Under the Crave franchise agreement, is a franchisee required to obtain covenants from employees and third parties who have access to confidential information?

According to Crave's 2025 Franchise Disclosure Document, franchisees are required to obtain confidentiality and non-compete covenants from certain individuals. Specifically, the franchisee must secure these covenants, similar to those outlined in Section 10.2.1 of the franchise agreement, from their General Manager and any other personnel who have access to confidential information. These covenants are to be substantially in the form set forth in Attachment 4 of the FDD.

Furthermore, if a Principal (likely referring to a key owner or manager) is married and their spouse has not already signed the franchise agreement, that Principal must ensure their spouse executes a Spouse Confidentiality and Non-Compete Agreement, using the form provided as Attachment 8 to the Franchise Agreement. This ensures that spouses of key individuals are also bound by confidentiality and non-compete obligations, likely to prevent leakage of sensitive business information or unfair competition.

These requirements are typical in franchising to protect the franchisor's trade secrets, operational methods, and other confidential information. By requiring these agreements, Crave aims to safeguard its competitive advantage and maintain the integrity of its franchise system. Prospective franchisees should carefully review Attachments 4 and 8 to understand the specific terms and obligations of these confidentiality and non-compete agreements.