Does Crave require franchisees to obtain confidentiality agreements from their General Manager and other personnel who have access to confidential information?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.2.2 You shall require and obtain the execution of covenants similar to those set forth in Section 10.2.1 from your General Manager and all other of your personnel who have received or will have access to confidential information. Such covenants shall be substantially in the form set forth in Attachment 4. If any Principal is a married individual and the Principal's spouse has not executed this Agreement, such Principal shall cause his or her spouse to personally execute and bind himself or herself to the terms of a Spouse Confidentiality and Non-Compete Agreement, in the form attached as Attachment 8.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are required to obtain confidentiality agreements. Specifically, franchisees must secure agreements from their General Manager and any other personnel who have access, or will have access, to confidential information related to the Crave franchise. These agreements must mirror the confidentiality terms outlined in Section 10.2.1 of the franchise agreement, and should be substantially similar to the form provided in Attachment 4 of the FDD.
These confidentiality agreements are designed to protect Crave's proprietary information, including the contents of the operations manual, recipes, marketing strategies, and other business-sensitive data. By requiring these agreements, Crave aims to prevent the unauthorized disclosure or use of its confidential information, which could harm the brand's competitive advantage. The FDD also states that if a Principal is married and their spouse has not executed the agreement, the Principal must ensure that their spouse signs a Spouse Confidentiality and Non-Compete Agreement, using the form attached as Attachment 8.
For a prospective Crave franchisee, this requirement means that they will need to implement procedures to ensure that all relevant employees and, if applicable, their spouse, sign the necessary confidentiality agreements. Failure to obtain these agreements could potentially lead to breaches of confidentiality, which could result in legal action or damage to the Crave brand. Franchisees should carefully review Section 10.2.1 and Attachment 4 of the Franchise Agreement to understand the specific terms and conditions of the required confidentiality agreements. Attachment 8 should also be reviewed if the franchisee is married.
Crave's approach is fairly standard in the franchise industry, as franchisors typically take measures to protect their trade secrets and confidential information. Requiring confidentiality agreements from employees and spouses is a common practice to ensure that sensitive information remains protected. Franchisees should be prepared to explain the importance of these agreements to their employees and ensure that they understand their obligations under the agreements.