During the term of the Crave Cookies Franchise Agreement, can the Guarantor be employed by a Competitor?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Restriction In Term.
During the term of the Franchise Agreement, Guarantor shall not 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.
- (b) Restriction Post Term.
For two years after the Franchise Agreement expires or is terminated for any reason (or, if applicable, for two years after a Transfer by Guarantor), Guarantor shall not 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 located 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 the Franchise Agreement is terminated before the Territory is determined, then the area of non-competition will 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, the Guarantor is restricted from being employed by a competitor during the term of the Franchise Agreement. Specifically, the Guarantor cannot 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 during the term of the Franchise Agreement.
This restriction ensures that the Guarantor, who has a vested interest in the success of the Crave Cookies franchise, does not contribute to or benefit from a competing business during the franchise term. This is a standard practice in franchising to protect the franchisor's business model and market position.
After the Franchise Agreement expires or is terminated, the Guarantor is still restricted from involvement with a Competitor for two years. This post-term restriction applies to Competitors located within five miles 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 non-competition area will be the Development Area and the territory of any other Crave Cookies business operating on the date of termination. These measures are designed to prevent the Guarantor from using knowledge gained during the franchise term to unfairly compete with Crave Cookies after the agreement ends.