If I violate the Crave agreement, can Crave seek an injunction against me?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Company is a third-party beneficiary of this Agreement and may enforce it, solely and/or jointly with the Franchisee. I am aware that my violation of this Agreement will cause the Company and the Franchisee irreparable harm; therefore, I acknowledge and agree that the Franchisee and/or the Company may apply for the issuance of an injunction preventing me from violating this Agreement, and I agree to pay the Franchisee and the Company all the costs it/they incur(s), including, without limitation, legal fees and expenses, if this Agreement is enforced against me. Due to the importance of this Agreement to the Franchisee and the Company, any claim I have against the Franchisee or the Company is a separate matter and does not entitle me to violate or justify any violation of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the company has the right to seek an injunction against involved parties for violations of the agreement. Specifically, if a Covenantor (an individual associated with the franchisee) violates the agreement, Crave can pursue legal action to prevent further breaches. This is in addition to any rights the franchisee may have.
This provision underscores the importance Crave places on adherence to the franchise agreement. It means that if a franchisee or related party acts in a way that harms the brand or violates the terms of the agreement, Crave can seek immediate legal intervention to stop the harmful behavior. This could include actions like divulging confidential information, competing with the franchise during or after the agreement term, or any other breach that could cause irreparable harm.
The FDD also stipulates that the violating party is responsible for covering all costs Crave incurs while enforcing the agreement, including legal fees and expenses. This serves as a further deterrent against violations, as the financial burden of defending against an injunction can be substantial. The agreement also states that any claims the Covenantor has against the franchisee or Crave do not justify violating the agreement.
Prospective franchisees should carefully review the covenants and restrictions outlined in the franchise agreement and related documents to fully understand their obligations and the potential consequences of non-compliance. Given the potential for injunctive relief and the associated financial liabilities, it is crucial to operate the franchise in accordance with the terms of the agreement.