What agreement must Crave's General Manager and other personnel with access to proprietary information sign?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisor and Franchisee are parties to a franchise agreement executed on or about the Effective Date hereof (the "Franchise Agreement"), whereby Franchisor has granted Franchisee the right to use certain trademarks, including, the registered trademark "CRAVE Hot Dogs Barbecue" and design mark, and certain proprietary products, services, promotions and methods (the "System") to establish and operate a Crave restaurant (the "Restaurant") pursuant to the System**;**
WHEREAS, Covenantor may have access to some or all of the confidential information, knowledge, know-how, techniques, contents of the Crave operations manual and other materials used in or related to the System and/or concerning the methods of operation of the System (collectively referred to as "Confidential Information");
WHEREAS, the Confidential Information provides economic advantages to Franchisor and licensed users of the System, including Franchisee;
WHEREAS, Franchisee has acknowledged the importance of restricting the use, access and dissemination of the Confidential Information, and Franchisee therefore has agreed to obtain from Covenantor a written agreement protecting the Confidential Information and further protecting the System against unfair competition; and
WHEREAS, Covenantor acknowledges that the execution of this Confidentiality and Non-Compete Agreement are in partial consideration for, and a condition to the granting of, the rights granted in the Franchise Agreement to Franchisee, and that Franchisor would not have granted these rights without the execution of this Confidentiality and Non-Compete Agreement by Covenantor.
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
1. Confidentiality Agreement.
- a. Covenantor shall, at all times, maintain the confidentiality of the Confidential Information and shall not at any time disclose or permit the disclosure of the Confidential Information.
- b. Covenantor shall not at any time make copies of any documents or compilations containing some or all of the Confidential Information without Franchisor's express written permission.
- c. Covenantor shall surrender any material containing some or all of the Confidential Information to Franchisor, upon request, or upon termination of the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 48–49)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the General Manager and other personnel with access to proprietary information must sign a Confidentiality and Non-Compete Agreement. This agreement is designed to protect Crave's confidential information and system from unfair competition. The agreement is a condition for the franchisee to be granted rights in the Franchise Agreement.
The Confidentiality and Non-Compete Agreement mandates that the personnel maintain the confidentiality of Crave's Confidential Information at all times and prohibits them from disclosing or permitting the disclosure of this information. They are also restricted from making copies of any documents containing Confidential Information without Crave's express written permission. Upon request or termination of the Franchise Agreement, they must surrender any material containing Confidential Information to Crave.
This requirement ensures that Crave's trade secrets, operational methods, and other proprietary information remain protected. For a prospective franchisee, this means they must ensure that their employees, especially those in management positions, understand and adhere to the terms of the Confidentiality and Non-Compete Agreement. This is a standard practice in franchising to safeguard the brand's intellectual property and competitive advantage.