What is Exhibit E of the Craters & Freighters Franchise Agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must ensure and require that all of the owners, officers, directors, shareholders, and partners of the franchisee entity execute a prescribed form of confidentiality and non-competition agreement that will be in substantially the same form attached to the Franchise Agreement as Exhibit E ("Confidentiality and Non-Competition Agreement").
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 34–35)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, Exhibit E attached to the Franchise Agreement is a prescribed form of confidentiality and non-competition agreement. This agreement must be executed by all owners, officers, directors, shareholders, and partners of the franchisee entity.
This means that if you are considering investing in a Craters & Freighters franchise, and your business structure involves multiple stakeholders such as partners or shareholders, each of these individuals will be required to sign this agreement. The purpose of this agreement is to protect Craters & Freighters' confidential information and prevent unfair competition.
Confidentiality and non-competition agreements are standard practice in franchising to safeguard the franchisor's business methods, trade secrets, and customer relationships. Prospective franchisees should carefully review the terms of Exhibit E to understand the specific restrictions and obligations it imposes on themselves and their business partners. It is advisable to seek legal counsel to fully understand the implications of this agreement before signing the Franchise Agreement.