factual

Under what conditions can the scope of the Crave non-compete agreement be reduced?

Q: Under what conditions can the scope of the Crave non-compete agreement be reduced?

2. Item 17 of the Disclosure Document is amended to reflect the requirement under Indiana Code 23-2-2.7-1 (9), which states that any post term non-compete covenant must not extend beyond the franchisee's exclusive territory. - 3. Item 17 is amended to state that this is subject to Indiana Code 23-2-2.7-1 (10). - 4. Under Indiana Code 23-2-2.7-1 (10), jurisdiction and venue must be in Indiana if the franchisee so requests. This amends Article 19 of the Franchise Agreement and Section 19 of the Multi-Unit Development Agreement. - 5. Under Indiana Code 23-2-2.7-1 (10), franchisee may not agree to waive any claims or rights. Source: Item 23 — RECEIPTS (FDD pages 63–253)

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

Item 17 of the Disclosure Document is amended to reflect the requirement under Indiana Code 23-2-2.7-1 (9), which states that any post term non-compete covenant must not extend beyond the franchisee's exclusive territory.

1. Item 17 is amended to state that this is subject to Indiana Code 23-2-2.7-1 (10).
1. Under Indiana Code 23-2-2.7-1 (10), jurisdiction and venue must be in Indiana if the franchisee so requests. This amends Article 19 of the Franchise Agreement and Section 19 of the Multi-Unit Development Agreement.
1. Under Indiana Code 23-2-2.7-1 (10), franchisee may not agree to waive any claims or rights.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, the non-compete agreement's scope can be reduced based on the state where the franchise is located. Specifically, for franchisees in Indiana, Item 17 of the Disclosure Document is amended to reflect Indiana Code 23-2-2.7-1 (9), which stipulates that any post-term non-compete covenant must not extend beyond the franchisee's exclusive territory. This means that in Indiana, the non-compete agreement is limited to the franchisee's exclusive territory, offering a more restricted scope compared to the standard agreement.

This modification is significant for prospective Crave franchisees in Indiana, as it provides a more limited restriction on their ability to engage in similar business activities after the termination of their franchise agreement. Unlike a broader non-compete clause that might restrict activities across a larger geographic area, the Indiana-specific clause ensures that the restriction is confined to the franchisee's exclusive territory. This could provide more flexibility for former franchisees to pursue other opportunities within the food service industry without being unduly constrained.

Furthermore, the FDD also notes that under Indiana Code 23-2-2.7-1 (10), jurisdiction and venue must be in Indiana if the franchisee requests. Also, under Indiana Code 23-2-2.7-1 (10), a franchisee may not agree to waive any claims or rights. These stipulations provide additional protections and rights to franchisees operating in Indiana, ensuring that legal proceedings related to the franchise agreement can be conducted within the state and that franchisees retain their legal rights.

It is important for potential franchisees to carefully review any state-specific addenda to understand how the standard franchise agreement is modified to comply with local laws. These addenda can significantly impact the terms and conditions of the franchise, including the scope and enforceability of non-compete agreements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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