What is the geographic scope of the non-competition covenant after the Crepe De Licious franchise is terminated or expires?

According to the 2025 Crepe De Licious Franchise Disclosure Document, if the franchise is terminated or expires, the owner is restricted from involvement in a competitive business. This restriction applies for two years within (i) a 25-mile radius from the former Crepe De Licious Business or Territory, including the premises of the Approved Location, and (ii) a 25-mile radius from all other Crepe De Licious businesses that are operating or under construction.

This means that after leaving the Crepe De Licious system, a former franchisee cannot own, manage, operate, finance, control, or participate in any competitive business within the specified geographic areas. The non-compete extends not only around the franchisee's former location but also around all other existing and developing Crepe De Licious locations. This could significantly limit business opportunities for a former franchisee, especially in areas with a high concentration of Crepe De Licious franchises.

It is important to note that these restrictions are in place to protect Crepe De Licious's market share and brand reputation. Franchisees should carefully consider the implications of these non-competition covenants before entering into a franchise agreement. Understanding the geographic scope and duration of these restrictions is crucial for planning future business ventures after the franchise term ends.