What sections of the Crepe De Licious Franchise Agreement outline the non-competition covenants for franchisees?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement | Section in Area Development Agreement | Item in Disclosure Document |
|---|---|---|---|
| w. Non-competition covenants | Sections 5.21, 5.23, 11.02 and 17.09 | 8 | Items 14, 15 and 17 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–29)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including non-competition covenants. Specifically, Sections 5.21, 5.23, 11.02, and 17.09 of the Franchise Agreement detail these covenants. Section 8 of the Area Development Agreement also addresses non-competition.
These sections are important for prospective franchisees as they define the restrictions on operating similar businesses during and after the franchise agreement term. Understanding these covenants is crucial to avoid potential legal issues and to plan future business ventures accordingly. The FDD also indicates that Items 14, 15, and 17 of the disclosure document provide further information related to non-competition.
Non-competition agreements are common in franchising to protect the brand and prevent franchisees from using the franchisor's proprietary information and business model to compete against the system. Franchisees should carefully review these sections with legal counsel to fully understand the scope and limitations of the non-competition covenants, including the geographic area and time period covered.