Which sections of the Crepe De Licious Franchise Agreement outline non-competition covenants?

According to the 2025 Crepe De Licious Franchise Disclosure Document, the sections in the Franchise Agreement that outline non-competition covenants are Sections 5.21, 5.23, 11.02, and 17.09. For the Area Development Agreement, the relevant section is 8. These sections are further referenced in Items 14, 15, and 17 of the FDD.

Non-competition covenants are legally binding agreements that restrict a franchisee's ability to engage in similar business activities, both during the term of the franchise agreement and for a specified period after the agreement ends. These covenants are designed to protect the Crepe De Licious brand and its business model by preventing franchisees from using the franchisor's confidential information and trade secrets to compete against the system.

A prospective Crepe De Licious franchisee should carefully review these sections of the Franchise Agreement and Area Development Agreement with legal counsel to fully understand the scope and limitations of the non-competition covenants. This includes understanding the geographic area covered by the restrictions, the duration of the restrictions, and the types of business activities that are prohibited. Understanding these restrictions is crucial for planning future business ventures and ensuring compliance with the terms of the franchise agreement.

It is also important to note that the enforceability of non-competition covenants can vary by jurisdiction, and courts may scrutinize these agreements to ensure they are reasonable and not overly broad. Therefore, a franchisee should seek legal advice to determine the enforceability of these covenants in their specific location.