For a Crave franchise, what is the dependency of the Franchise Agreement on the Spouse Confidentiality and Non-Compete Agreement?

According to Crave's 2025 Franchise Disclosure Document, the Franchise Agreement is dependent on the execution of the Spouse Confidentiality and Non-Compete Agreement. Specifically, the document states that the execution of the Confidentiality and Non-Compete Agreement by the spouse (or Covenantor) is a partial consideration for granting the rights in the Franchise Agreement to the franchisee. Crave would not grant these rights without this agreement.

This means that if the principal of the Crave franchise is married, their spouse must sign the Spouse Confidentiality and Non-Compete Agreement. This agreement protects Crave's confidential information and system against unfair competition by preventing the spouse from disclosing confidential information or engaging in competitive activities.

The Spouse Confidentiality and Non-Compete Agreement includes clauses that ensure the spouse maintains the confidentiality of Crave's Confidential Information, and does not engage in any competitive business during the term of the Franchise Agreement and for a period of two years after the termination of the Franchise Agreement, within a specific radius. This is a fairly standard practice in franchising to protect the brand's interests.

The agreement also specifies that the spouse cannot take actions that would be harmful to the goodwill associated with the Crave system. This ensures that the spouse is aligned with the success of the franchise and does not take actions that could damage the brand's reputation. The obligations within the Spouse Confidentiality and Non-Compete Agreement cannot be assigned by the spouse without Crave's prior written consent.