Who is considered a third-party beneficiary of the Crave confidentiality and non-competition agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
(the "Agreement") is made and entered into this | |----------------------------------------------------------|------------------------------------------------------------------------------------------------| | | (the "Effective Date"), by CRAVE Franchising, LLC, a | | Wyoming limited liability company | , an individual, residing | | ("Franchisor"), and | | | at | ("Covenantor"), in connection with a franchise | | agreement executed by Franchisor and | ("Principal" and "Franchisee"). | WHEREAS, Franchisor and Franchisee are parties to a franchise agreement executed on or about the Effective Date hereof (the "Franchise Agreement"), whereby Franchisor has granted Franchisee the right to use certain trademarks, including, the registered trademark "CRAVE Hot Dogs Barbecue" and design mark, and certain proprietary products, services, promotions and methods (the "System") to establish and operate a Crave restaurant (the "Restaurant") pursuant to the System**;**
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.
d. Covenantor shall not at any time, directly or indirectly, do any act or omit to do any act that would or would likely be injurious or prejudicial to the goodwill associated with the System.
**2.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the agreement between the franchisor, franchisee, and a covenantor (likely an employee or someone with access to confidential information) includes considerations for protecting confidential information and preventing unfair competition. Crave would not grant franchise rights without the covenantor's agreement to these terms.
The document states that the confidential information provides economic advantages to Crave and its licensed users, including the franchisee. The franchisee acknowledges the importance of restricting access to and dissemination of confidential information and agrees to obtain a written agreement from the covenantor to protect this information and prevent unfair competition.
The agreement specifies that the covenantor must maintain the confidentiality of the confidential information at all times and not disclose it. The covenantor also cannot make copies of documents containing confidential information without Crave's written permission and must surrender any material containing confidential information upon request or termination of the Franchise Agreement. Crave's rights and remedies under this agreement are fully assignable and transferable, benefiting its affiliates, successors, and assigns.