Can the franchisor unilaterally reduce the scope of any non-compete covenant in the Crave Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
I understand and acknowledge that the Company shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Agreement, or any portion thereof, without my consent, effective immediately upon receipt by me of written notice thereof; and I agree to comply forthwith with any covenant as so modified.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchisor has the right to unilaterally reduce the scope of any non-compete covenant. Specifically, the Spouse Confidentiality and Non-Compete Agreement states that Crave has the discretion to modify the non-compete agreement without the spouse's consent. This modification becomes effective immediately upon the spouse receiving written notice. The spouse must then comply with the modified covenant.
This clause gives Crave significant flexibility in adjusting the non-compete terms. It allows them to respond quickly to changing business conditions or legal requirements. However, it also introduces uncertainty for the franchisee's spouse, as the extent of their non-compete obligations could change during the term of the agreement.
This type of clause is not uncommon in franchise agreements, as franchisors often seek to protect their business interests and maintain a competitive advantage. However, prospective franchisees should carefully consider the implications of such clauses and seek legal advice to fully understand their rights and obligations. Franchisees should also consider how this might affect their spouse's career or business opportunities during and after the franchise term.