What is the franchisee seeking by entering into the Crave agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee desires to enter into a franchise agreement with Franchisor for a Crave business ("Franchise Agreement") which will allow Franchisee to conduct internet-based advertising, maintain social media accounts, software accounts, and use telephone listings linked to the Crave brand.
WHEREAS, Franchisor and Franchisee are parties to a franchise agreement executed on or about the Effective Date hereof (the "Franchise Agreement"), whereby Franchisor has granted Franchisee the right to use certain trademarks, including, the registered trademark "CRAVE Hot Dogs Barbecue" and design mark, and certain proprietary products, services, promotions and methods (the "System") to establish and operate a Crave restaurant (the "Restaurant") pursuant to the System**;**
WHEREAS, Covenantor may have access to some or all of the confidential information, knowledge, know-how, techniques, contents of the Crave operations manual and other materials used in or related to the System and/or concerning the methods of operation of the System (collectively referred to as "Confidential Information");
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee enters into a franchise agreement with Crave to operate a Crave business. This agreement allows the franchisee to conduct internet-based advertising, maintain social media and software accounts, and use telephone listings linked to the Crave brand.
Specifically, the franchisee gains the right to use Crave's trademarks, including the registered trademark "CRAVE Hot Dogs Barbecue" and design mark, along with proprietary products, services, promotions, and methods (referred to as the "System"). This enables them to establish and operate a Crave restaurant according to the System's standards.
In return, the franchisee must comply with all terms and provisions of the Franchise Agreement. A key aspect involves protecting Crave's confidential information, which includes knowledge, know-how, techniques, and the contents of the Crave operations manual. The franchisee must ensure this information remains confidential and is not disclosed, as it provides economic advantages to Crave and its franchisees. The franchisee may also be required to have their spouse sign a confidentiality and non-compete agreement to further protect this information.