Does the Crepe De Licious Management Agreement require the Franchisee to take any specific actions?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
You further agree that you will not use all or part of the Intellectual Property or all or part of the System for any purpose other than the performance of your duties for Franchisee and within the scope of your employment or other engagement with Franchisee.
These restrictions on Know-how, Intellectual Property and the System shall not apply to any information which is information publicly known or becomes lawfully known in the public domain other than through a breach of this Agreement or is required or compelled by law to be disclosed, provided that you will give reasonable notice to us to allow us to seek protective or other court orders.
- **4.
Unfair Competition During Relationship**.
You agree not to unfairly compete with us at any time while you are a manager or officer of Franchisee's Crepe de licious business by engaging in any Prohibited Activities.
- **5.
Unfair Competition After Relationship**.
You agree not to unfairly compete with us during the Restricted Period by engaging in any Prohibited Activities; provided, however, that the Prohibited Activity relating to having an interest in a Competitive Business will only apply with respect to a Competitive Business that is located within or provides competitive goods or services to customers who are located within the Restricted Territory.
If you engage in any Prohibited Activities during the Restricted Period, then you agree that your Restricted Period will be extended by the period of time during which you were engaging in the Prohibited Activity.
- **6.
Immediate Family Members**.
You acknowledge that you could circumvent the purpose of this Agreement by disclosing Know-how to an immediate family member (i.e., spouse, parent, sibling, child, grandparent or grandchild).
You also acknowledge that it would be difficult for us to prove whether you disclosed the Know-how to family members.
Therefore, you agree that you will be presumed to have violated the terms of this Agreement if any member of your immediate family: (i) engages in any Prohibited Activities during any period of time during which you are prohibited from engaging in the Prohibited Activities; or (ii) uses or discloses the Know-how.
However, you may rebut this presumption by furnishing evidence conclusively showing that you did not disclose the Know-how to the family member.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the System Protection Agreement outlines specific actions and restrictions for individuals who are managers or officers of a Crepe De Licious franchise. These individuals, referred to as 'you' in the agreement, agree not to use Crepe De Licious's Intellectual Property or System for any purpose outside their duties for the franchisee. They are also prohibited from unfairly competing with Crepe De Licious during and after their relationship with the franchisee. This includes not engaging in 'Prohibited Activities' such as owning or operating a competitive business.
The agreement specifies that these restrictions on Know-how, Intellectual Property, and the System do not apply to information that is publicly known or legally required to be disclosed, provided that Crepe De Licious is given notice to seek protective orders. Furthermore, there are non-compete clauses that extend even after the individual's relationship with the Crepe De Licious franchise ends, lasting for a 'Restricted Period' of two years, which may be reduced to 12 months by a court of competent jurisdiction.
The agreement also addresses potential circumvention through family members. It states that if an immediate family member engages in Prohibited Activities or uses/discloses Know-how, it is presumed that the manager or officer violated the agreement, although this presumption can be rebutted with conclusive evidence. Overall, the System Protection Agreement places significant obligations on managers and officers of Crepe De Licious franchises to protect the brand's Intellectual Property and prevent unfair competition, with potential legal ramifications for non-compliance.