Does the Crave Franchise Agreement consider the potential harm from violating the non-compete agreement as irreparable?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Company is a third-party beneficiary of this Agreement and may enforce it, solely and/or jointly with the Franchisee. I am aware that my violation of this Agreement will cause the Company and the Franchisee irreparable harm; therefore, I acknowledge and agree that the Franchisee and/or the Company may apply for the issuance of an injunction preventing me from violating this Agreement, and I agree to pay the Franchisee and the Company all the costs it/they incur(s), including, without limitation, legal fees and expenses, if this Agreement is enforced against me. Due to the importance of this Agreement to the Franchisee and the Company, any claim I have against the Franchisee or the Company is a separate matter and does not entitle me to violate or justify any violation of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Spouse Confidentiality and Non-Compete Agreement acknowledges that a violation of the agreement will cause irreparable harm to both Crave and the franchisee. Specifically, paragraph 10 states that Crave and/or the franchisee may seek an injunction to prevent any violation of the agreement. The agreement also stipulates that the individual violating the agreement is responsible for covering all costs incurred by Crave and the franchisee, including legal fees and expenses, if enforcement becomes necessary.
This clause has significant implications for anyone signing the Spouse Confidentiality and Non-Compete Agreement. It means that Crave can immediately seek a court order (injunction) to stop any behavior that violates the agreement, rather than waiting for monetary damages to accrue. This is a powerful tool for Crave to protect its confidential information and system. The agreement also makes the violating party responsible for all legal costs associated with enforcing the agreement, which could be substantial.
Such clauses are relatively common in franchise agreements, particularly concerning non-compete and confidentiality provisions. Franchisors like Crave often include them to underscore the importance of protecting their brand, trade secrets, and customer relationships. The ability to quickly obtain an injunction can be a critical remedy for a franchisor when a franchisee or related party acts in a way that threatens the business.
Prospective franchisees should carefully review the Spouse Confidentiality and Non-Compete Agreement and understand the full scope of its restrictions and potential liabilities. It is advisable to consult with an attorney to fully grasp the implications before signing. This is especially important for the spouse or partner of the franchisee, as they are directly bound by the terms of the agreement and could face significant legal and financial consequences for any violations.