What is the radius, in miles, within which a Crave franchisee is prohibited from having a financial interest in a Competitive Business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
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 an interest in a Competitive Business within a specific radius. During the term of the Franchise Agreement, the franchisee cannot divert business from any Crave outlet or other franchisees, nor can they participate in any food service business featuring similar menu items to Crave.
Post-termination, for two years, the franchisee is prohibited from involvement in a similar food service business within ten (10) miles of their Designated Territory or any Crave outlet location. This restriction aims to protect Crave's goodwill and unique qualities of the system by preventing former franchisees from directly competing using the knowledge and experience gained during their franchise term.
The agreement specifies that these covenants are considered reasonable in terms of time, geographical area, and scope, ensuring they do not impose a greater restraint than necessary to protect Crave's business interests. This non-compete clause is a standard practice in franchising to maintain brand consistency and prevent unfair competition from former franchisees.