How does the presence of another Crave franchised business affect the calculation of receipts, specifically regarding the 10-mile radius?
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 Competitive Business, which business is, or is intended to be, located within a ten (10) mile radius of the location of any Franchised Business in the System.
10.3.3 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 our goodwill or other business interests.
The parties agree that each of the covenants herein shall be construed as independent of any other covenant or provision of this Agreement.
If all or any portion of a covenant in this Section is held unreasonable or unenforceable by a court or agency having valid jurisdiction in an unappealed final decision to which we are a party, you and the Principals expressly agree to be bound by any lesser covenant subsumed within the terms of such covenant that imposes the maximum duty permitted by law, as if the resulting covenant were separately stated in and made a part of this Section.
(a) You and the Principals understand and acknowledge that we shall have the right, in our sole and absolute discretion, to reduce the scope of any covenant set forth in this Section 10.3, or any portion thereof, without their consent, effective immediately upon notice to you; and you and the Principals agree that they shall comply forthwith with any covenant as so modified, which shall be fully enforceable notwithstanding the provisions of Section 19.2 hereof.
(b) You and the Principals expressly agree that the existence of any claims they may have against us, whether or not arising from this Agreement, shall not constitute a defense to our enforcement of the covenants in this Section.
(c) Sections 10.3.1(b) and 10.3.2(b) shall not apply to ownership of less than a five percent (5%) beneficial interest in the outstanding equity securities of any publicly held company.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee is restricted from engaging in or having a financial interest in a Competitive Business within a ten (10) mile radius of any Franchised Business in the Crave system. This restriction is in place to protect Crave's goodwill and business interests. This covenant applies during the term of the Franchise Agreement.
Upon termination of the Franchise Agreement, the franchisee is further restricted for two (2) years from diverting business from any Crave outlet or participating in a similar food service business within ten (10) miles of the Designated Territory or any Crave outlet location. These covenants are acknowledged as reasonable limitations to protect Crave's business interests.
These restrictions do not prevent a franchisee from holding less than a five percent (5%) beneficial interest in the outstanding equity securities of any publicly held company. Crave also retains the right to reduce the scope of any covenant without the franchisee's consent, effective immediately upon notice. The existence of claims against Crave does not constitute a defense against the enforcement of these covenants.