After the Crave Cookies Franchise Agreement expires, for how long are Restricted Parties prohibited from being employed by a competitor?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Restriction Post Term. For two years after this Agreement expires or is terminated for any reason (or, if applicable, for two years after a Transfer), no Restricted Party shall directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor within five miles of Franchisee's Territory or the territory of any other Crave Cookies business operating on the date of termination or transfer, as applicable. If this Agreement is terminated before the Territory is determined, then the area of non-competition will be the Development Area and the territory of any other Crave Cookies business operating on the date of termination.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Restricted Parties, which include the franchisee, any owner, or any spouse of an owner, are subject to a post-term covenant not to compete. This restriction lasts for two years after the Franchise Agreement expires or is terminated for any reason.
During this two-year period, Restricted Parties are prohibited from having any ownership interest in, lending money or providing financial assistance to, providing any services to, or being employed by any competitor. This restriction applies within a five-mile radius of the franchisee's territory or the territory of any other Crave Cookies business operating on the date of termination or transfer.
If the Franchise Agreement is terminated before the territory is determined, the area of non-competition will be the Development Area and the territory of any other Crave Cookies business operating on the date of termination. This non-compete agreement aims to protect Crave Cookies's market share and confidential information by preventing former franchisees from using their knowledge to benefit competing businesses in the immediate vicinity of a Crave Cookies location.