What is the scope of the Crepe De Licious Management Agreement in relation to the Franchised Unit?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
he Release contained herein in the matter contemplated hereby.
(Signatures on following page)
IN WITNESS WHEREOF, Releasor has executed this Release as of the date first written above.
, a FRANCHISEE'S OWNERS: Typed or Printed Name Typed or Printed Name Rev. 061518
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.
1. Definitions. For purposes of this Agreement, the following terms have the meanings given to them below:
"Competitive Business" means any business that: (i) sells or offers to sell products the same as or similar to the type of products sold by you in and/or from the Franchisee Territory (including, but not limited to, the products we authorize); or (ii) provides or offers to provide services the same as or similar to the type of services sold by you in and/or from the Franchisee Territory (including, but not limited to, the services we authorize), but excludes a Crepe de licious business operating pursuant to a franchise agreement with us.
"Copyrights" means all works and materials for which we or our affiliate have secured common law or registered copyright protection and that we allow franchisees to use, sell, or display in connection with the marketing and/or operation of a Crepe de licious business or the solicitation or offer of a Crepe de licious franchise, whether now in existence or created in the future.
"Franchisee" means the Crepe de licious franchisee for which you are a manager or officer.
"Franchisee Territory" means the territory granted to you pursuant to a franchise agreement with us.
"Intellectual Property" means, collectively or individually, our Marks, Copyrights, Know-how, and System.
"Know-how" means all of our trade secrets and other proprietary information relating to the development, construction, marketing, and/or operation of a Crepe de licious business, including, but not limited to, methods, techniques, specifications, proprietary practices and procedures, policies, marketing strategies, and information comprising the System and the Manual.
"Manual" means our confidential operations manual for the operation of a Crepe de licious business, which may be periodically modified by us.
"Marks" means the logotypes, service marks, and trademarks now or hereafter involved in the operation of a Crepe de licious business, including "CREPE DE LICIOUS," and any other trademarks, service marks, or trade names that we designate for use by a Crepe de licious business. The term "Marks" also includes any distinctive trade dress used to identify a Crepe de licious business, whether now in existence or hereafter created.
"Prohibited Activities" means any or all of the following: (i) owning, operating, or having any other interest (as an owner, partner, director, officer, employee, manager, consultant, shareholder, creditor, representative, agent, or in any 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.
"Restricted Territory" means the geographic area within: (i) a 25-mile radius from Franchisee's Crepe de licious business (and including the premises of the approved location of Franchisee); and (ii) a 25 mile radius from all other Crepe de licious businesses that are operating or under construction as of the beginning of the Restricted Period; provided, however, that if a court of competent jurisdiction determines that the foregoing Restricted Territory is too broad to be enforceable, then the "Restricted Territory" means the geographic area within a 12-mile radius from Franchisee's Crepe de licious business (and including the premises of the approved location of Franchisee).
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the System Protection Agreement outlines the scope and limitations for managers or officers of a Crepe De Licious franchise. This agreement focuses on protecting Crepe De Licious's intellectual property and preventing unfair competition. The agreement defines key terms such as 'Competitive Business,' 'Copyrights,' 'Franchisee,' 'Franchisee Territory,' 'Intellectual Property,' 'Know-how,' 'Manual,' 'Marks,' and 'System' to clearly establish the boundaries of the agreement.
The agreement restricts managers or officers from using Crepe De Licious's intellectual property or system for any purpose outside their duties for the franchisee. This includes using the information for personal gain or to benefit a competing business. However, these restrictions do not apply to information that is publicly known or legally required to be disclosed, provided that Crepe De Licious is given notice to seek protective orders.
Furthermore, the agreement includes clauses to prevent unfair competition both during and after the individual's relationship with the Crepe De Licious franchise. While serving as a manager or officer, engaging in 'Prohibited Activities' such as owning or operating a competitive business is prohibited. After the relationship ends, a 'Restricted Period' of two years (or potentially 12 months if deemed more enforceable by a court) applies, during which the individual is still restricted from engaging in prohibited activities. These measures are designed to protect Crepe De Licious's market position and proprietary information.