Does the Crepe De Licious Management Agreement specify any geographic limitations on the Manager's role?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
"Restricted Territory" means the geographic area within: (i) a 25-mile radius from Franchisee's Crepe de licious business (and including the premises of the approved location of Franchisee); and (ii) a 25 mile radius from all other Crepe de licious businesses that are operating or under construction as of the beginning of the Restricted Period; provided, however, that if a court of competent jurisdiction determines that the foregoing Restricted Territory is too broad to be enforceable, then the "Restricted Territory" means the geographic area within a 12-mile radius from Franchisee's Crepe de licious business (and including the premises of the approved location of Franchisee).
"System" means our system for the establishment, development, operation, and management of a Crepe de licious business, including Know-how, proprietary programs and products, Manual, and operating system.
- **2.
Background**.
You are a manager or officer of Franchisee.
As a result of this relationship, you may gain knowledge of our System.
You understand that protecting the Intellectual Property and our System are vital to our success and that of our franchisees and that you could seriously jeopardize our entire System if you were to unfairly compete with us.
In order to avoid such damage, you agree to comply with the terms of this Agreement.
- **3.
Know-How and Intellectual Property**.
You agree: (i) you will not use the Know-how in any business or capacity other than the Crepe de licious business operated by Franchisee; (ii) you will maintain the confidentiality of the Know-how at all times; (iii) you will not make unauthorized copies of documents containing any Know-how; (iv) you will take such reasonable steps as we may ask of you from time to time to prevent unauthorized use or disclosure of the Know-how; and (v) you will stop using the Know-how immediately if you are no longer a manager or officer of Franchisee's Crepe de licious business.
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 includes geographic limitations that apply to the manager or officer of the franchisee. Specifically, it defines a "Restricted Territory" which limits the manager's activities after they are no longer associated with the Crepe De Licious franchise.
The "Restricted Territory" is defined as a geographic area within a 25-mile radius of the franchisee's Crepe De Licious business, including the premises of the approved location. It also includes a 25-mile radius from all other Crepe De Licious businesses that are operating or under construction at the beginning of the restricted period. However, if a court finds the 25-mile radius too broad, the "Restricted Territory" will be reduced to a 12-mile radius from the franchisee's Crepe De Licious business.
This agreement ensures that a manager or officer leaving a Crepe De Licious franchise cannot unfairly compete with the existing franchise or other Crepe De Licious locations within a specified area for a certain period. The agreement also includes definitions for terms like "Competitive Business" and "Prohibited Activities," which further clarify the restrictions placed on the manager or officer. The "Restricted Period" is two years after the manager or officer ceases their association with the Crepe De Licious business, but this can be reduced to 12 months if a court deems the two-year period unenforceable.