Does the Craters & Freighters Confidentiality and Non-Compete Agreement require the Restricted Person to acknowledge the reasonableness of the restrictions?

According to the 2025 Craters & Freighters Franchise Disclosure Document, the Confidentiality and Non-Compete Agreement does require the Restricted Person to acknowledge the reasonableness of the restrictions. Specifically, the Restricted Person confirms that the length of the term and geographical restrictions are fair and reasonable, and not the result of overreaching, duress, or coercion. This acknowledgement is a standard component of non-compete agreements, intended to support the enforceability of the restrictions.

This acknowledgement is significant because it can influence how a court interprets the enforceability of the non-compete agreement. By agreeing that the restrictions are reasonable, the Restricted Person may face a higher burden in challenging the agreement later on. The agreement also states that if a court finds any restriction unenforceable due to its scope, geographic area, type of business activity, or length of time, the Restricted Person agrees to comply with any lesser restriction deemed enforceable by the court.

Furthermore, the agreement stipulates that if Craters & Freighters initiates legal proceedings to enforce the agreement and prevails, the Restricted Person must reimburse Craters & Freighters for its enforcement costs and expenses, including attorneys' fees. This provision adds another layer of risk for the Restricted Person, as they could be responsible for Craters & Freighters' legal costs in addition to their own if they violate the agreement and Craters & Freighters successfully enforces it.