Am I obligated to pay Crave's costs if I violate the confidentiality and non-competition agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
CRAVE Franchising, LLC ("Franchisor") and ("Franchisee") are parties , to for a the Franchise operation Agreement of dated a Crave restaurant at (the "Franchised Business"). In accordance with Article 2 of the Franchise Agreement, Franchisee certifies to Franchisor that, to the best of Franchisee's knowledge, the Franchised Business and its adjacent areas comply with all applicable federal, state and local accessibility laws, statutes, codes, rules, regulations and standards, including but not limited to the Americans with Disabilities Act. Franchisee acknowledges that it is an independent licensee and the requirement of this certification by Franchisee does not constitute ownership, control, leasing or operation of the Franchised Business. Franchisee acknowledges that Franchisee has relied on the information contained in this certification. Furthermore, Franchisee acknowledge its obligation under this Franchise Agreement directors, to and indemnify employees of and the in officers, connection with any and all claims, losses, costs, expenses, liabilities, compliance costs, and damages incurred by the indemnified party(ies) as a result of any matters associated with Franchisee's compliance with the Americans with Disabilities Act, as well as the costs, including attorneys' fees, related to the same. By: Name: Title: PRINCIPALS:
ATTACHMENT 8 TO THE FRANCHISE AGREEMENT
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the franchisee acknowledges their obligation to indemnify Crave, including its officers, directors, and employees. This indemnification covers all claims, losses, costs, expenses, liabilities, compliance costs, and damages incurred by Crave due to the franchisee's non-compliance with the Americans with Disabilities Act (ADA). This also extends to all costs, including attorney's fees, related to ADA compliance.
In practical terms, this means that if a Crave franchisee fails to adhere to ADA regulations, they are responsible for covering any financial repercussions that Crave might face as a result. This could include legal settlements, fines, or expenses related to making the restaurant compliant with ADA standards. The franchisee's responsibility extends to covering Crave's legal costs, such as attorney's fees, associated with addressing the non-compliance.
This requirement underscores the importance of franchisees fully understanding and adhering to all applicable laws, especially the ADA. Franchisees should conduct thorough due diligence to ensure their Crave restaurant complies with all relevant regulations. Furthermore, franchisees should maintain adequate insurance coverage to protect against potential liabilities arising from non-compliance. This obligation is documented in Attachment 7 to the Franchise Agreement, specifically concerning the Americans with Disabilities Act Certification.