Does the Crave non-compete agreement apply to the Principals of the franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Confidentiality and Non-Compete Agreement (the "Agreement") is made and entered into this | |
|---|---|
| (the "Effective Date"), by CRAVE Franchising, LLC, a | |
| Wyoming limited liability company | , an individual, residing |
| ("Franchisor"), and | |
| at | ("Covenantor"), in connection with a franchise |
| agreement executed by Franchisor and | ("Principal" and "Franchisee"). |
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the non-compete agreement does apply to individuals referred to as 'Covenantors,' in connection with a franchise agreement executed by Crave and the 'Principal' or 'Franchisee.'
Specifically, the FDD mentions a 'Spouse Confidentiality and Non-Compete Agreement' as Attachment 8 to the Franchise Agreement, suggesting that spouses of franchisees are often required to sign such agreements. The document also states that the execution of the Confidentiality and Non-Compete Agreement by the Covenantor is a condition to the granting of rights in the Franchise Agreement to the Franchisee.
Therefore, prospective Crave franchisees should carefully review the Confidentiality and Non-Compete Agreement to understand its terms and how it applies to them and any related parties who may be required to sign it. Understanding the scope and limitations of these agreements is crucial before investing in a Crave franchise.