After the Crave Franchise Agreement expires, terminates, or is transferred, for how long does the non-compete period last?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, after the franchise agreement expires, terminates, or is transferred, a non-compete period of two years applies. During this time, neither the franchisee nor any principal involved can engage in activities that could harm Crave's business.
Specifically, the franchisee and principals are prohibited from diverting business or customers to competitors, or from performing any actions that could negatively impact the goodwill associated with Crave's trademarks and system. They are also restricted from owning, operating, or having a financial interest in any competitive business, such as a food service business offering similar products, within the United States or any area where Crave uses or has registered similar trademarks.
However, this non-compete restriction is not absolute. Crave may, at its discretion, provide written approval to waive or modify these restrictions. This clause ensures that franchisees and their principals do not leverage their knowledge and experience gained from operating a Crave franchise to directly compete with the brand shortly after their agreement ends, protecting Crave's market position and franchisee network.