After the Crave franchise agreement expires or terminates, are franchisees and principals still bound by confidentiality obligations?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
10.2.1 Neither you nor the Principals shall, during the term of this Agreement or thereafter, communicate, divulge or use for the benefit of any other person, persons, partnership, association or corporation and, following the expiration or termination of this Agreement, they shall not use for their own benefit any confidential information, knowledge or know-how concerning the methods of operation of the Franchised Business which may be communicated to them or of which they may be apprised in connection with the operation of the Franchised Business under the terms of this Agreement. You and the Principals shall divulge such confidential information only to
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, both the franchisee and their principals are bound by confidentiality obligations even after the franchise agreement expires or terminates. Specifically, they cannot communicate, divulge, or use any confidential information, knowledge, or know-how related to the operation of the Crave franchise for the benefit of any other person or entity. Furthermore, after the agreement ends, they are prohibited from using such confidential information for their own benefit.
This obligation extends to any confidential information regarding the methods of operation of the Crave franchised business that was communicated to them or that they became aware of during the term of the agreement. This means that franchisees and their principals must not disclose or utilize any proprietary information about Crave's business practices, recipes, marketing strategies, or other internal knowledge, ensuring that the Crave system's competitive advantage is protected even after the franchise relationship concludes.
The confidentiality clause is a standard practice in franchising to protect the franchisor's intellectual property and trade secrets. For a prospective Crave franchisee, this means understanding that the duty of confidentiality survives the termination or expiration of the franchise agreement. Franchisees should ensure they and their principals understand the scope of confidential information and take appropriate measures to safeguard it both during and after the franchise term.