factual

What is the consequence of performing an act that is injurious to the goodwill associated with the Crave Marks and System?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

f this Agreement, except as otherwise approved in writing by us, which approval may be withheld or denied in our sole and absolute discretion, neither you nor any of Principal shall, either directly or indirectly, for themselves or through, on behalf of or in conjunction with any person(s), partnership or corporation:

  • (a) Divert, or attempt to divert, any business or customer of the Franchised Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Crave franchisees or Franchisor-affiliated outlets.
  • (b) Own, maintain, operate, engage in, or have any financial or beneficial interest in (including any interest in corporations, partnerships, trusts, unincorporated associations or joint ventures), advise, assist or make loans to, any business located within the United States, its territories, states or commonwealths, or any other country, province, state or geographic area in which we have used, sought registration of or registered the same or similar Marks or operates or licenses others to operate a business under the same or similar Marks, which business is of a character and concept similar to the Franchised Business, including a food service business which offers and sells the same or substantially similar food products (a "Competitive Business") without our prior written consent.
  • 10.3.2 For a continuous uninterrupted period commencing upon the expiration, termination of, or transfer of all of your interest in, this Agreement and continuing for two (2) years thereafter, except as otherwise approved in our sole and absolute discretion, neither you nor any Principal shall, directly or indirectly, for themselves, or through, on behalf of or in conjunction with any person, persons, partnership, or corporation:
  • (a) Divert, or attempt to divert, any business or customer of the Franchised Business hereunder to any competitor, by direct or indirect inducement or otherwise, or do or perform,

directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Crave franchisees or Franchisor-affiliated outlets.

  • (b) Own, maintain, operate, engage in, or have any financial or beneficial interest in (including any interest in corporations, partnerships, trusts, unincorporated associations or joint ventures), advise, assist or make loans to any Competitive Business, which business is, or is intended to be, located within a ten (10) mile radius of the location of any Franchised Business in the System.
  • 10.3.3 The parties acknowledge and agree that each of the covenants contained herein are reasonable limitations as to time, geographical area, and scope of activity to be restrained and do not impose a greater restraint than is necessary to protect our goodwill or other business interests. The parties agree that each of the covenants herein shall be construed as independent of any other covenant or provision of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to the 2025 Crave FDD, franchisees are prohibited from performing any act that is injurious or prejudicial to the goodwill associated with the Crave Marks and System. This restriction applies both during the term of the Franchise Agreement and for a period of two years after the agreement's expiration or termination. This includes refraining from diverting or attempting to divert any business or customer of the franchised business to any competitor, whether directly or indirectly.

During the franchise term, franchisees must not participate as an owner, partner, director, officer, employee, consultant, or agent in any restaurant or food service business featuring menu items that are the same or substantially similar to those offered in the Crave system. After the termination of the Franchise Agreement, this restriction continues for two years within a ten-mile radius of the Designated Territory or any Crave outlet location.

The FDD emphasizes that these covenants are considered reasonable limitations regarding time, geographical area, and scope of activity. They are designed to protect the goodwill and unique qualities of the Crave system and do not impose a greater restraint than necessary to safeguard Crave's business interests. Franchisees acknowledge that they will receive valuable training and confidential information, including secret recipes and marketing methods, and agree to these covenants to protect this information and the Crave brand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.