Does the Crave non-compete agreement prevent me from advising a competitive business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Own, maintain, operate, engage in, or have any financial or beneficial interest in (including any interest in corporations, partnerships, trusts, unincorporated associations or joint ventures), advise, assist or make loans to, any business located within the United States, its territories, states or commonwealths, or any other country, province, state or geographic area in which we have used, sought registration of or registered the same or similar Marks or operates or licenses others to operate a business under the same or similar Marks, which business is of a character and concept similar to the Franchised Business, including a food service business which offers and sells the same or substantially similar food products (a "Compe
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 extends to advising a competitive business. During the term of the Franchise Agreement, the Covenantor (which appears to be a spouse or related party) cannot participate as an owner, partner, director, officer, employee, consultant, or agent in any restaurant or food service business featuring similar menu items to Crave. This restriction applies to any capacity, meaning advising a similar business is prohibited.
After the Franchise Agreement terminates, the non-compete restrictions continue for two years. During this post-term period, the Covenantor is prohibited from participating as an owner, partner, director, officer, employee, or consultant in a similar restaurant or food service business within ten miles of the Designated Territory or any Crave outlet location. The post-term restriction specifically includes acting as a consultant, which reinforces that advising a competitive business is not allowed.
The FDD states that these covenants are considered reasonable in terms of time, geographical area, and scope to protect Crave's goodwill and business interests. This means Crave believes these restrictions are necessary to prevent unfair competition and protect their confidential information. A prospective franchisee should carefully consider these restrictions and how they might impact their spouse or related party's professional activities, both during the franchise term and for two years afterward.
It is important to note that these non-compete obligations apply to the Covenantor, who is typically the franchisee's spouse or another close individual who has access to Crave's confidential information. The franchisee themselves will also be subject to similar non-compete restrictions as part of their Franchise Agreement. Therefore, both the franchisee and the Covenantor must understand the full scope of these limitations before entering into a franchise agreement with Crave.