Besides the franchisee, who else acknowledges receipt and sufficiency of mutual consideration for the benefit of uniform interpretation of the Crave franchise agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, in addition to the franchisee, the Covenantor acknowledges that the execution of the Confidentiality and Non-Compete Agreement is partial consideration for granting the rights in the Franchise Agreement to the franchisee. The franchisor would not have granted these rights without the Covenantor's execution of this agreement. This acknowledgement is part of the Spouse Confidentiality and Non-Compete Agreement, indicating that a spouse or similar party closely associated with the franchisee also agrees to be bound by certain terms, especially those concerning confidentiality and non-competition.
This requirement ensures that confidential information remains protected, as the Covenantor acknowledges they may have access to confidential information, knowledge, know-how, techniques, contents of the Crave operations manual and other materials related to the Crave system. By signing the agreement, the Covenantor agrees to maintain the confidentiality of this information and not disclose it to others. This is a standard practice in franchising to safeguard proprietary information and maintain a competitive advantage.
The Covenantor also agrees to certain non-compete covenants during the term of the franchise agreement and for two years after termination. This prevents the Covenantor from engaging in any business that competes with Crave, further protecting the brand's interests. The agreement specifies that the Covenantor cannot divert business from Crave outlets or participate in any food service business featuring similar menu items. This is a critical measure to prevent unfair competition and protect the franchise system's goodwill.
For a prospective Crave franchisee, this means that their spouse or partner will also need to sign a confidentiality and non-compete agreement. This requirement should be discussed with their spouse or partner to ensure they understand the obligations and restrictions involved. It is important to review the agreement carefully and seek legal advice if needed to fully understand the implications of signing the document.