To whom are Crave franchisees permitted to divulge confidential information?
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 such of your employees as must have access to it in order to operate the Franchised Business. Any and all information, knowledge, know-how, techniques and any materials used in or related to the System which we provide to you in connection with this Agreement, including but not limited to the Manual, plans and specifications, marketing information and strategies and site evaluation, selection guidelines and techniques, recipes, and the terms of this Agreement, shall be deemed confidential for purposes of this Agreement. Neither you nor the Principals shall at any time, without our prior written consent, copy, duplicate, record or otherwise reproduce such materials or information, in whole or in part, nor otherwise make the same available to any unauthorized person. The covenants in this Section shall survive the expiration, termination or transfer of this Agreement or any interest herein and shall be perpetually binding upon you and the Principals.
- 10.2.2 You shall require and obtain the execution of covenants similar to those set forth in Section 10.2.1 from your General Manager and all other of your personnel who have received or will have access to confidential information. Such covenants shall be substantially in the form set forth in Attachment 4. If any Principal is a married individual and the Principal's spouse has not executed this Agreement, such Principal shall cause his or her spouse to personally execute and bind himself or herself to the terms of a Spouse Confidentiality and Non-Compete Agreement, in the form attached as Attachment 8.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 47–48)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees and their principals are permitted to share confidential information only with employees who need access to it in order to operate the franchised business. This is a standard practice in franchising, as it allows the business to function while protecting sensitive information.
The FDD specifies that any and all information, knowledge, know-how, techniques, and materials related to the Crave system are deemed confidential. This includes, but is not limited to, the manual, plans and specifications, marketing information and strategies, site evaluation, selection guidelines and techniques, recipes, and the terms of the franchise agreement itself. Franchisees and their principals are prohibited from copying, duplicating, recording, or reproducing such materials without prior written consent from Crave. They also cannot make this information available to any unauthorized person.
Crave also requires franchisees to obtain confidentiality agreements from their general manager and any other personnel who have access to confidential information. These agreements must be substantially similar to the covenants outlined in the franchise agreement. If a principal is married and their spouse has not signed the agreement, the principal must ensure that their spouse signs a Spouse Confidentiality and Non-Compete Agreement. These measures are in place to ensure that confidential information remains protected, even within the franchisee's own business operations.