What condition might Crave place on its consideration of a proposed outsourcing vendor for a Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Covenantor may have access to some or all of the confidential information, knowledge, know-how, techniques, contents of the Crave operations manual and other materials used in or related to the System and/or concerning the methods of operation of the System (collectively referred to as "Confidential Information");
WHEREAS, the Confidential Information provides economic advantages to Franchisor and licensed users of the System, including Franchisee;
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.
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
1. Confidentiality Agreement.
- a. Covenantor shall, at all times, maintain the confidentiality of the Confidential Information and shall not at any time disclose or permit the disclosure of the Confidential Information.
- b. Covenantor shall not at any time make copies of any documents or compilations containing some or all of the Confidential Information without Franchisor's express written permission.
- c. Covenantor shall surrender any material containing some or all of the Confidential Information to Franchisor, upon request, or upon termination of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave Franchise Disclosure Document, Crave requires a written agreement protecting confidential information and guarding against unfair competition from any party gaining access to its operational secrets. This condition extends to outsourcing vendors, referred to as 'Covenantor' in the agreement.
The agreement stipulates that the 'Covenantor' must maintain the confidentiality of Crave's 'Confidential Information,' which includes knowledge, know-how, techniques, contents of the Crave operations manual, and other materials related to the System. The Covenantor is prohibited from disclosing this information and from making copies of related documents without Crave's explicit written permission.
Furthermore, upon request or termination of the Franchise Agreement, the Covenantor must surrender any materials containing confidential information to Crave. This measure ensures that sensitive operational details remain protected, preserving Crave's competitive advantage and the integrity of its franchise system. This requirement is a condition to granting the rights in the Franchise Agreement to the franchisee.