What happens if I interfere with the business of other Crave franchisees?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
f this Agreement, except as otherwise approved in writing by us, which approval may be withheld or denied in our sole and absolute discretion, neither you nor any of Principal shall, either directly or indirectly, for themselves or through, on behalf of or in conjunction with any person(s), partnership or corporation:
- (a) Divert, or attempt to divert, any business or customer of the Franchised Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Crave franchisees or Franchisor-affiliated outlets.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are prohibited from interfering with the business of the Franchisor or other Crave franchisees. During the term of the franchise agreement, franchisees cannot divert or attempt to divert business or customers from any Crave outlet or other franchisees to a competitor. This includes any direct or indirect inducement. Franchisees also cannot participate as an owner, partner, director, officer, employee, consultant, or agent in any restaurant or food service business featuring menu items that are substantially similar to those offered in the Crave system.
These restrictions also apply for a period of two years after the termination of the franchise agreement. During this time, franchisees are prohibited from diverting business or customers from Crave outlets or other franchisees. They also cannot participate in a similar restaurant or food service business within ten miles of the Designated Territory or any Crave outlet location in a managerial, operational, or supervisory capacity.
The FDD states that these covenants are considered reasonable limitations regarding time, geographical area, and scope of activity. They are designed to protect the goodwill and business interests of Crave. By agreeing to these terms, franchisees acknowledge the importance of maintaining the integrity of the Crave system and preventing unfair competition that could harm other franchisees or the franchisor.