Can Crepe De Licious require that the confidentiality and system protection agreements identify them as a third-party beneficiary?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT H -2
CREPE DE LICIOUS FRANCHISE
SAMPLE SYSTEM PROTECTION AGREEMENT
This System Protection Agreement ("Agreement") is entered into by the undersigned ("you" or "your") in favor of Crepe Delicious Holding USA, Inc., a Delaware corporation, and its successors and assigns ("us," "we" or "our"), upon the terms and conditions set forth in this Agreement.
EXHIBIT H-3
CREPE DE LICIOUS FRANCHISE
SAMPLE CONFIDENTIALITY AGREEMENT
This Confidentiality Agreement ("Agreement") is entered into by the undersigned ("you") in favor of Crepe Delicious Holding USA, Inc., a Delaware corporation, and its successors and assigns ("us"), upon the terms and conditions set forth in this Agreement.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the franchisor provides sample agreements related to system protection and confidentiality. Specifically, Exhibit H-2 outlines a sample System Protection Agreement, and Exhibit H-3 presents a sample Confidentiality Agreement. Both agreements are explicitly made in favor of Crepe Delicious Holding USA, Inc., indicating that Crepe De Licious requires these agreements to identify them as a direct beneficiary.
These agreements are put in place to protect Crepe De Licious's intellectual property and system. The System Protection Agreement focuses on preventing individuals associated with a franchisee (such as managers or officers) from engaging in activities that could harm the Crepe De Licious business, such as working for a competitor or diverting business away from the franchise. The Confidentiality Agreement ensures that sensitive information about the Crepe De Licious system remains protected.
For a prospective franchisee, this means that any individuals they employ who have access to Crepe De Licious's confidential information or system will be legally bound to protect those assets. This provides Crepe De Licious with a direct legal recourse against those individuals if they breach the agreement, regardless of their relationship with the franchisee. It is a standard practice in franchising to implement such measures to safeguard the brand's intellectual property and operational methods.
By ensuring that these agreements directly benefit Crepe De Licious, the franchisor maintains control over its proprietary information and can take action against any unauthorized use or disclosure, even if the franchisee is not directly involved in the breach. This setup offers an additional layer of protection for the Crepe De Licious system and brand, which is crucial for maintaining consistency and competitiveness across all franchise locations.