Are Crave franchisees required to prevent unauthorized persons from accessing confidential information?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.6 You shall at all times preserve in confidence any and all materials and information furnished or disclosed to you by us and you shall disclose such information or materials only to such of your employees or agents who must have access to it in connection with their employment.
You shall not 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.
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 have a responsibility to protect confidential information and prevent unauthorized access. The FDD specifies that franchisees must only divulge confidential information to employees who require access to operate the franchised business. Franchisees are prohibited from copying, duplicating, recording, or reproducing confidential materials without prior written consent from Crave, and they cannot make this information available to any unauthorized person.
Crave defines confidential information broadly, including the operations manual, plans, specifications, marketing strategies, site evaluation techniques, recipes, and the terms of the franchise agreement itself. This information is considered proprietary and a trade secret of Crave. Franchisees must ensure that their general manager and all personnel who have access to confidential information sign confidentiality covenants similar to those in the franchise agreement.
Furthermore, the FDD states that franchisees must preserve the confidentiality of all materials and information furnished by Crave and disclose such information only to employees or agents who need it for their employment. This obligation extends beyond just the franchisee and their employees; Principals (owners, partners, etc.) are also bound by these confidentiality requirements. These measures are designed to protect Crave's competitive advantage and maintain the integrity of the franchise system.
These confidentiality obligations survive the termination or transfer of the Franchise Agreement and are perpetually binding. This means that even after a franchisee leaves the Crave system, they and their Principals remain obligated to protect the confidential information they acquired during their time as a franchisee. Crave also retains ownership of all materials on any website they establish, including content provided by the franchisee for their subpage.