Are Crepe De Licious Owners bound by the non-compete covenants outlined in the Franchise Agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
3. Covenant Not To Compete.
- 3.1 Non-Competition During and After the Term of the Franchise Agreement. Owners acknowledge that as a participant in our system, they will receive proprietary and confidential information and materials, trade secrets, and the unique methods, procedures and techniques which we have developed. The provisions of the Franchise Agreement governing Franchisee's restrictions on competition both during the term of the Franchise Agreement and following the expiration or termination of the Franchise Agreement are hereby incorporated into this Owners Agreement by reference, and Owners agree to comply with and perform each such covenant as though fully set forth in this Owners Agreement as a direct and primary obligation of Owners. Further, we may seek the same remedies against Owners under this Owners Agreement as we may seek against Franchisee under the Franchise Agreement.
- 3.2 Construction of Covenants. The parties agree that each such covenant related to noncompetition will be construed as independent of any other covenant or provisi
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, owners are indeed bound by the non-compete covenants outlined in the Franchise Agreement. As participants in the Crepe De Licious system, owners will receive proprietary and confidential information, trade secrets, and unique methods developed by the company.
The provisions within the Franchise Agreement that govern the restrictions on competition during the term of the agreement and following its expiration or termination are incorporated into the Owners Agreement. Owners must comply with these covenants as a direct and primary obligation. Crepe De Licious can pursue the same legal remedies against owners as it can against franchisees under the Franchise Agreement for breaches of these covenants.
These covenants are construed as independent of any other covenant or provision, meaning that the enforceability of one covenant does not depend on the enforceability of others. This ensures that Crepe De Licious can protect its business interests and confidential information by restricting owners from engaging in competitive activities during and after their involvement with the franchise.