What articles in the Crave Franchise Agreement and sections in the MUDA cover non-competition covenants?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Article or Section in Agreement | Disclosure Document | |
|---|---|---|---|
| Item | |||
| a. Site selection and acquisition/ | FA – Article 2 | Items 8 and 11 | |
| lease | MUDA – Section 3 | ||
| b. Pre-opening purchases/leases | FA – Articles 6, 7 and 8 | Items 6, 7, 8 and 11 | |
| c. Site development and other pre- | FA – Article 2 | Items 8 and 11 | |
| opening requirements | |||
| d. Initial and ongoing training | FA – Article 6 | Items 6, 7 and 11 | |
| e. Opening | FA – Articles 2 and 6 | Item 11 | |
| Obligation | Article or Section in Agreement | Disclosure Document Item | |
| f. |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 30–31)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, non-competition covenants are addressed in Article 10 and Attachment 4 of the Franchise Agreement, and Section 12 of the MUDA (Multi-Unit Development Agreement). This information is crucial for prospective franchisees as it outlines the restrictions they will face regarding competitive activities during and after the franchise term.
Specifically, Article 10 of the Franchise Agreement likely details the terms of the non-compete, such as the duration and geographic scope of the restrictions. Attachment 4 to the Franchise Agreement probably contains the actual non-competition agreement that the franchisee, their general manager, and other personnel must sign. Section 12 of the MUDA would outline any non-compete obligations for franchisees who are developing multiple Crave locations.
Understanding these covenants is essential for franchisees to assess the limitations on their business activities, both during the franchise term and afterward. Franchisees should carefully review these sections with legal counsel to fully understand their obligations and how they might impact future business opportunities. Crave also has the right to decrease the period of time or geographic scope of the non-competition covenants contained in the attachments or eliminate the non-competition covenants altogether for any party that must sign an agreement.