What is the geographic radius of the non-competition restriction for a former Crepe De Licious franchisee?

According to the 2025 Crepe De Licious Franchise Disclosure Document, a former manager or officer of a Crepe De Licious franchise faces non-competition restrictions within a defined geographic area. This area, termed the "Restricted Territory," extends (i) 25 miles from the former franchisee's Crepe De Licious business, encompassing the approved location, and (ii) 25 miles from all other Crepe De Licious businesses that are operating or under construction at the time the restricted period begins. This means the non-compete applies not only around the franchisee's own location but also around other existing or planned Crepe De Licious locations.

However, the FDD also includes a contingency: should a court deem the 25-mile radius too broad to be enforceable, the "Restricted Territory" shrinks to a 12-mile radius from the former franchisee's Crepe De Licious business, including its approved location. This clause acknowledges the potential for legal challenges to the non-compete agreement and provides a fallback position with a smaller radius.

This non-compete restriction is tied to the "Restricted Period," which lasts for two years after the individual ceases to be a manager or officer of the Crepe De Licious franchise. Similar to the geographic restriction, this time period can also be reduced by a court to 12 months if the original two-year term is deemed unenforceable. The non-compete prevents the former manager or officer from engaging in "Prohibited Activities," such as owning or working for a competing business within the Restricted Territory. This ensures that former insiders cannot immediately leverage their knowledge to benefit a rival business within a substantial area around Crepe De Licious locations.