Does having a claim against Crave excuse me from complying with the non-compete covenants in the Crave Franchise Agreement?

The 2025 Crave FDD includes a provision in an addendum for the state of Indiana that addresses waiving claims or rights. According to this addendum, a franchisee in Indiana may not agree to waive any claims or rights. This addendum amends the Crave Franchise Agreement for franchisees in Indiana.

However, the FDD does not explicitly state whether having a claim against Crave excuses a franchisee from complying with the non-compete covenants outlined in the Franchise Agreement. The Confidentiality and Non-Compete Agreement included as Exhibit B-2 to the Crave Franchise Disclosure Document outlines the terms of the non-compete, including restrictions during the term of the Franchise Agreement and for two years after termination. These restrictions include not diverting business from any Crave outlet and not participating in any food service business featuring similar menu items to Crave within a certain distance.

Because the FDD does not directly address whether a claim against Crave would excuse compliance with the non-compete, prospective franchisees should seek clarification from Crave regarding this matter. It would be prudent to understand under what specific circumstances, if any, the non-compete obligations could be waived or deemed unenforceable due to claims against the company. Franchisees should consult with a legal professional to fully understand their rights and obligations under the Franchise Agreement and any applicable state laws.