Under what conditions might Crave require franchisees or their principals to sign additional confidentiality and noncompetition agreements?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Depending on the type of business activities in which you or your Principals may be involved, we may require you or your Principals to sign additional confidentiality and noncompetition agreements.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–9)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave may require franchisees or their principals to sign additional confidentiality and noncompetition agreements depending on the type of business activities in which they may be involved. This means that if a franchisee or their principals are engaged in activities that Crave deems could potentially compromise confidential information or create a competitive conflict, Crave reserves the right to impose further contractual obligations. These additional agreements would serve to protect Crave's interests and ensure that franchisees and their principals do not use confidential information gained through the franchise relationship to compete against Crave or disclose sensitive business information.
This is a fairly standard practice in franchising, as franchisors often seek to protect their trade secrets, customer relationships, and market position. The specific terms of these additional agreements would likely vary depending on the nature of the franchisee's or their principals' other business activities. It is important for prospective franchisees to understand that these agreements could place restrictions on their ability to engage in certain business ventures, both during the term of the franchise agreement and potentially for a period after its termination.
Prospective Crave franchisees should carefully review the Franchise Agreement and any related documents to understand the full scope of these potential restrictions. It would be prudent to seek legal counsel to assess the implications of these agreements and to negotiate terms that are reasonable and do not unduly restrict their business opportunities. Franchisees should also inquire about specific examples of activities that would trigger the requirement for additional confidentiality and noncompetition agreements to fully understand the potential impact on their business dealings.