Can Crave reduce the scope of the non-compete covenants in the Crave Franchise Agreement without my consent?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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- I understand and acknowledge that the Company shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Agreement, or any portion thereof, without my consent, effective immediately upon receipt by me of written notice thereof; and I agree to comply forthwith with any covenant as so modified.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the company has the right to unilaterally reduce the scope of any non-compete covenant without the franchisee's consent. Specifically, Crave can modify the non-compete agreement, and it becomes effective immediately once the franchisee receives written notice of the change. The franchisee must then comply with the modified covenant.
This clause gives Crave significant flexibility to adjust the non-compete terms as they see fit. For a prospective franchisee, this means the initial non-compete terms outlined in the agreement could be altered during the franchise term. It is important to understand that the franchisee has no power to negotiate or reject these changes; they must comply once notified.
This type of clause is not standard in all franchise agreements, and franchisees should carefully consider its implications. It is essential to assess the potential impact of such modifications on their business operations and future opportunities. Crave franchisees should seek legal counsel to fully understand the extent of this clause and its potential effects.