Does the Crave agreement survive the termination of the Franchise Agreement?

According to Crave's 2025 Franchise Disclosure Document, the Confidentiality and Non-Compete Agreement survives the termination of the Franchise Agreement. Specifically, the Covenantor (which appears to be an individual associated with the franchisee) must surrender any material containing confidential information to Crave upon request or upon termination of the Franchise Agreement. This obligation ensures that even after the franchise relationship ends, sensitive business information remains protected.

This survival clause is a standard practice in franchising to safeguard the franchisor's proprietary information and prevent unfair competition from former franchisees or their associates. The agreement highlights the importance Crave places on protecting its Confidential Information, knowledge, know-how, techniques, contents of the Crave operations manual and other materials used in or related to the System.

For a prospective Crave franchisee, this means that their obligations regarding confidentiality and non-competition extend beyond the term of the franchise agreement. They must ensure that anyone with access to Crave's confidential information, such as employees or business partners, also understands and complies with these ongoing obligations. This could involve implementing internal policies and procedures to protect confidential information and ensuring that all relevant parties sign confidentiality agreements.