What form of confidentiality agreement does 7 Brew have the right to pre-approve?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to keep secure all parts of the Operations Manual and to restrict access to any passwords for accessing the Operations Manual. If there is a dispute over its contents, our master version of the Operations Manual controls. You agree that the Operations Manual's contents are confidential and not to disclose any part of the Operations Manual to any person other than Store employees and others
needing access in order to perform their duties, but only if they agree to maintain its confidentiality by signing a form of confidentiality agreement. We have the right to pre-approve the form used (an acceptable sample of which is attached as Exhibit D). You may not at any time copy, duplicate, record, or otherwise reproduce any part of the Operations Manual without our permission.
While we have the right to pre-approve the form of confidentiality agreement you use with Store employees and others having access to our Confidential Information in order to protect that Confidential Information, under no circumstances will we control the forms or terms of employment agreements you use with Store employees or otherwise be responsible for your labor relations.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew has the right to pre-approve the form of confidentiality agreement that franchisees use with their store employees and others who have access to the company's confidential information. This is to ensure that franchisees adequately protect the confidential information and maintain the competitiveness of 7 Brew stores. An acceptable sample of the confidentiality agreement is attached as Exhibit D to the FDD.
This pre-approval right allows 7 Brew to maintain control over how its confidential information is handled and protected by those working within the franchise system. Confidential information includes things like the operations manual, brand standards, recipes, and other proprietary knowledge essential to running a 7 Brew store. By pre-approving the confidentiality agreement, 7 Brew can ensure that the terms are sufficient to prevent unauthorized disclosure or use of this information.
It is important to note that while 7 Brew has the right to pre-approve the confidentiality agreement, they will not control the forms or terms of employment agreements franchisees use with their store employees. 7 Brew also clarifies that they will not be responsible for the franchisee's labor relations or employment practices. This distinction is important because it clarifies that franchisees are responsible for managing their employees, but must ensure that any employee with access to confidential information signs a confidentiality agreement that 7 Brew has pre-approved.