How is the 'Restricted Territory' defined geographically in relation to a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ny similar capacity) in a Competitive Business (other than owning an interest of five percent (5%) or less in a publicly-traded company that is a Competitive Business); and/or (ii) diverting or attempting to divert any business from us (or one of our affiliates or franchisees).
"Restricted Period" means the two-year period after you cease to be a manager or officer of Franchisee's Crepe de licious business; provided, however, that if a court of competent jurisdiction determines that this period of time is too long to be enforceable, then the "Restricted Period" means the 12 month period after you cease to be a manager or officer of Franchisee's Crepe de licious business.
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the "Restricted Territory" is defined by two geographic areas. The first is a 25-mile radius from the franchisee's Crepe De Licious business, which includes the approved location of the franchise. The second is a 25-mile radius from all other Crepe De Licious businesses that are either operating or under construction at the beginning of the Restricted Period.
However, there is a condition that could change the size of the restricted territory. If a court determines that the 25-mile radius is too broad to be enforceable, the "Restricted Territory" will then be defined as the geographic area within a 12-mile radius from the franchisee's Crepe De Licious business, including the premises of the approved location.
This definition of the restricted territory is important for a prospective franchisee to understand, as it dictates where they are restricted from operating a similar business should they cease to be a manager or officer of the Crepe De Licious franchise. The initial 25-mile radius provides a substantial area of protection, but the potential reduction to a 12-mile radius by court order introduces some uncertainty. Franchisees should consider the density of Crepe De Licious locations in their area and the likelihood of such a legal challenge when assessing the value of this restriction.