Does Crave claim proprietary rights in its recipes?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 14: PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION]
Confidential Information: We claim proprietary rights in certain of our recipes which are included in the Manual, and which are our trade secrets. Any and all information, knowledge, know-how and techniques related to the System that we communicate to you, including the Manual, plans and specifications, marketing information and strategies and site evaluation, selection guidelines and techniques, recipes, and the terms of your agreement with us, are considered confidential. You and each of your Principals are prohibited, during and after the term of your Agreement, from communicating, or using for the benefit of any other person or entity, and, after the term of your Agreement, from using for your or their own benefit, any confidential information, knowledge or know-how concerning the methods of operation of the Franchised Business that may be communicated to you or any of your Principals or that you may learn about. You and each of your Principals may divulge this confidential information only to your employees who must have access to it to operate the Franchised Business. Neither you nor your Principals are permitted at any time, without first obtaining our written consent, to copy, record or otherwise reproduce the materials or information nor make them available to any unauthorized person. If we ask, you must have your general manager and any of your personnel who have received or will have access to confidential information sign similar confidentiality covenants.
If you, your Principals, general manager, or employees develop any new concept, process or improvement in the operation or promotion of the Franchised Business, you must promptly notify us and give us all necessary information, free of charge. You, your Principals, general manager, and employees must acknowledge that any of these concepts, processes or improvements will become our property and we may give the information to other franchisees.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 47–48)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave does claim proprietary rights in its recipes. The FDD specifies that certain recipes included in the manual are considered trade secrets and are confidential information.
As a franchisee, you are required to maintain the confidentiality of this information both during and after the term of the franchise agreement. This means you cannot share the recipes with anyone outside of your employees who need access to them for operating the franchised business. Additionally, you cannot use this information for your own benefit or for the benefit of any other person or entity.
The FDD also states that if a franchisee develops any new concept, process, or improvement in the operation of the franchised business, they must promptly notify Crave, and these developments become the property of Crave. This ensures that Crave maintains control over the system's intellectual property and can share improvements with other franchisees.
These stipulations are fairly standard in the franchise industry, as franchisors need to protect their brand and operational methods. For a prospective Crave franchisee, this means understanding and adhering to strict confidentiality requirements regarding recipes and operational information.