Who can enforce the Crave confidentiality and non-competition agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Confidentiality and Non-Compete Agreement (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"). |
Any change in the foregoing addresses shall be effected by giving written notice of such change to the other parties.
- i. The rights and remedies of Franchisor under this Agreement are fully assignable and transferable and shall inure to the benefit of its respective affiliates, successors and assigns.
- j. The obligations of Covenantor hereunder may not be assigned by Covenantor, without the prior written consent of Franchisor.
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave Franchising, LLC, as the Franchisor, has the right to enforce the Confidentiality and Non-Compete Agreement. The agreement is made between Crave Franchising, LLC and the Covenantor, who is typically an employee or someone with access to Crave's confidential information. The agreement outlines that the Covenantor acknowledges that the execution of the Confidentiality and Non-Compete Agreement is a condition for the rights granted in the Franchise Agreement to the Franchisee.
The agreement specifies that the Covenantor must maintain the confidentiality of Crave's Confidential Information and not disclose it. They also cannot make copies of documents containing confidential information without Crave's written permission and must return any material containing confidential information upon request or termination of the Franchise Agreement. Furthermore, the Covenantor cannot take any action that would harm the goodwill associated with the Crave system.
Crave's rights and remedies under this agreement are fully assignable and transferable to its affiliates, successors, and assigns. However, the Covenantor's obligations cannot be assigned without Crave's prior written consent. This ensures that Crave retains control over who is bound by the confidentiality and non-competition terms, even if the franchise changes hands or is transferred to another entity. This protects Crave's interests by ensuring that the confidentiality and non-compete obligations remain with the individuals who have access to sensitive information and have agreed to these terms.
In practical terms, this means that if a Covenantor breaches the agreement, Crave Franchising, LLC has the legal right to take action to enforce the terms, such as seeking an injunction to prevent further disclosure of confidential information or pursuing legal remedies for damages caused by the breach. Prospective franchisees should ensure that all employees or individuals with access to Crave's confidential information understand and agree to the terms of the Confidentiality and Non-Compete Agreement to avoid potential legal issues.