factual

Does Crepe De Licious have the right to reduce the scope of the non-compete covenant for Owners?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

  • d. You and we both believe that the covenants in this Agreement are reasonable in terms of scope, duration, and geographic area. However, we may at any time unilaterally modify the terms of this Agreement upon written notice to you by limiting the scope of the Prohibited Activities, narrowing the definition of a Competitive Business, shortening the duration of the Restricted Period, reducing the geographic scope of the Restricted Territory, and/or reducing the scope of any other covenant imposed upon you under this Agreement to ensure that the terms and covenants in this Agreement are enforceable under applicable law.

Source: Item 22 — CONTRACTS (FDD page 57)

What This Means (2025 FDD)

According to Crepe De Licious's 2025 Franchise Disclosure Document, Crepe De Licious retains the right to modify the non-compete agreement. Specifically, Crepe De Licious can unilaterally change the terms of the agreement by providing written notice to the franchisee. These modifications may include limiting the scope of prohibited activities, narrowing the definition of a competitive business, shortening the duration of the restricted period, reducing the geographic scope of the restricted territory, and/or reducing the scope of any other covenant imposed upon the franchisee.

This ability to modify the non-compete terms allows Crepe De Licious to ensure that the covenants are enforceable under applicable law. This means that if a specific term is deemed unreasonable or too restrictive, Crepe De Licious can adjust it to comply with legal standards. For a potential franchisee, this indicates that the non-compete terms outlined in the agreement are subject to change during the franchise term.

It is important for a prospective Crepe De Licious franchisee to understand that the non-compete agreement's terms can be altered by Crepe De Licious. While this provides some assurance that the terms will remain legally sound, it also introduces an element of uncertainty, as the franchisee must be prepared to adapt to potential changes in these restrictions. Franchisees should seek legal counsel to fully understand the implications of these clauses and how they might affect their future business activities should they leave the Crepe De Licious system.

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.