What must a Craters & Freighters franchisee ensure regarding the execution of the Confidentiality and Non-Competition Agreement?

According to Craters & Freighters' 2025 Franchise Disclosure Document, a franchisee must ensure that all owners, officers, directors, shareholders, and partners of the franchisee entity execute a prescribed Confidentiality and Non-Competition Agreement. This agreement is in substantially the same form as Exhibit E attached to the Franchise Agreement.

This requirement means that if the franchisee is a business entity (like a corporation or partnership), all individuals with significant ownership or management roles must sign the agreement. This is a standard practice in franchising to protect the franchisor's confidential information and prevent unfair competition. The agreement aims to legally bind these individuals to maintain the confidentiality of Craters & Freighters' proprietary information and adhere to non-competition terms.

Prospective franchisees should carefully review Exhibit E of the Franchise Agreement to understand the specific terms and conditions of the Confidentiality and Non-Competition Agreement. They should also ensure that all relevant parties within their business entity are willing and able to comply with these terms before investing in a Craters & Freighters franchise. Failure to secure these agreements could potentially lead to breaches of the franchise agreement and legal repercussions.