Does the Crave non-compete agreement apply to activities performed in connection with another Franchised Business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
d. Covenantor shall not at any time, directly or indirectly, do any act or omit to do any act that would or would likely be injurious or prejudicial to the goodwill associated with the System.
2. Covenants Not to Compete.
a. In order to protect the goodwill and unique qualities of the System, and in consideration for the disclosure to Covenantor of the Confidential Information, Covenantor further agrees and covenants that during the term of the Franchise Agreement, Covenantor shall not, for Covenantor or through, on behalf of or in conjunction with any person or entity:
(i) divert, or attempt to divert, any business or customer of any Crave outlet or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise, or
(ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any restaurant or food service business featuring menu items which are the same or substantially similar to those offered in the Crave System.
b. In further consideration for the disclosure to Covenantor of the Confidential Information and to protect the goodwill and unique qualities of the System, Covenantor further agrees and covenants that, upon the termination of the Franchise Agreement and continuing for two (2) years thereafter, Covenantor shall not, for Covenantor or through, on behalf of or in conjunction with any person or entity:
(i) divert, or attempt to divert, any business or customer of any Crave outlet or of other franchisees in the Crave System to any competitor, by direct or indirect inducement or otherwise, or
(ii) participate as an owner, partner, director, officer, employee, or consultant or serve in any other managerial, operational or supervisory capacity in any restaurant or food service business featuring menu items which are the same or substantially similar to those offered in the Crave System within ten (10) miles of the Designated Territory or any Crave outlet location.
c. The parties acknowledge and agree that each of the covenants contained herein are reasonable limitations as to time, geographical area, and scope of activity to be restrained and do not impose a greater restraint than is necessary to protect the goodwill or other business interests of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to the 2025 Crave Franchise Disclosure Document, the non-compete agreement applies to the Covenantor, who may have access to confidential information. During the term of the Franchise Agreement, the Covenantor cannot divert business from any Crave outlet or other franchisees to any competitor. The Covenantor also cannot participate in any restaurant or food service business featuring menu items that are the same or substantially similar to those offered in the Crave system.
After the Franchise Agreement terminates, for two years, the Covenantor cannot divert business from any Crave outlet or other franchisees to any competitor. Additionally, the Covenantor cannot participate in any restaurant or food service business featuring menu items that are the same or substantially similar to those offered in the Crave system within ten miles of the Designated Territory or any Crave outlet location.
These covenants protect the goodwill and unique qualities of the Crave system. The agreement states that these restrictions are reasonable in terms of time, geographical area, and scope of activity, ensuring they do not impose a greater restraint than necessary to protect Crave's business interests.