factual

What post-termination obligations must a Crepe De Licious franchisee comply with upon expiration or termination of the Franchise Agreement?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 17.10 Other Post-Termination Obligations. Upon the expiration or termination of this Agreement by any means or for any reason, you will immediately and strictly comply with all other provisions of this Agreement pertaining to post-termination obligations.

  • (b) engage in or invest in, own, manage, operate, finance, control, or participate in the ownership, management, operation, financing, or control of, be employed by, associated with, or in any manner connected with, lend your name or any similar name to, or render services or advice to any business that offers or sells any crepe-based food items or gelato within a 25-mile radius of any Restaurant, Kiosk, or Food Truck owned or operated by us or any of our affiliates or franchisees; or

  • (c) interfere with the Restaurant's, Kiosk's, or Food Truck's and/or our relationship with any person, including any person who at any time during the term of this Agreement was an employee, contractor, supplier, or customer.

The parties agree that each of the foregoing covenants will be construed as independent of any other covenant or provision of this Agreement. If all or any portion of a covenant in this Section 17.09 is held unenforceable by a court or agency having valid jurisdiction in an unappealed final decision to which we are a party, you expressly agree to be bound by any lesser covenant imposing the maximum duty permitted by law that is subsumed within the terms of the covenant, as if the resulting covenant were separately stated in and made a part of this Section 17.09. You further agree that the existence of any claim you may have against us, whether or not arising from this Agreement, will not constitute a defense to the enforcement by us of the covenants in this Section 17.09. You understand and acknowledge that we will have the right, in our sole discretion, to unilaterally reduce the scope of any covenant set forth in this Section 17.09 or any portion hereof, without your consent, effective immediately upon receipt by you of written notice thereof; and you agree that you will comply immediately with any covenant as so modified.

Source: Item 22 — CONTRACTS (FDD page 57)

What This Means (2025 FDD)

According to the 2025 Crepe De Licious Franchise Disclosure Document, franchisees must adhere to post-termination obligations as outlined in the Franchise Agreement. Specifically, upon expiration or termination of the agreement, the franchisee must immediately and strictly comply with all provisions of the agreement that pertain to post-termination obligations.

One key restriction is that the franchisee is prohibited from engaging in any business that offers or sells crepe-based food items or gelato within a 25-mile radius of any Crepe De Licious restaurant, kiosk, or food truck owned or operated by the company, its affiliates, or other franchisees. Additionally, the franchisee cannot interfere with Crepe De Licious's relationships with its employees, contractors, suppliers, or customers.

These covenants are considered independent, and Crepe De Licious has the right to reduce the scope of any covenant with written notice. Franchisees acknowledge that any claims against Crepe De Licious do not constitute a defense against the enforcement of these covenants. These post-termination obligations are designed to protect Crepe De Licious's market and relationships after a franchise agreement ends.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.