Why does 7 Brew reserve the right to pre-approve confidentiality and non-compete forms?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ormation in an unauthorized manner. You must take reasonable steps to prevent its improper disclosure to others and use non-disclosure agreements with those having access to Confidential Information. We have the right to pre-approve your nondisclosure agreements solely to ensure that you adequately protect Confidential Information and the competitiveness of 7 BREW Stores. 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 or employment practices.
You must promptly disclose to us all ideas, concepts, techniques, or materials relating to a 7 BREW Store ("Innovations"), whether or not protectable intellectual property and whether created by or for you or your owners, employees, or contractors. Innovations belong to and are works made-for-hire for us.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 52–53)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew retains the right to pre-approve confidentiality and non-compete agreements to ensure that franchisees adequately protect the brand's confidential information and maintain the competitiveness of 7 Brew stores. This is explicitly stated in Item 14 regarding nondisclosure agreements and in Item 22 concerning agreements with officers, directors, and supervisory personnel. However, 7 Brew does not control the forms or terms of employment agreements franchisees use with their store employees and is not responsible for labor relations or employment practices.
Confidential Information includes, but is not limited to, knowledge of store demographics, specifications for suppliers, methods of ordering, operating results, financial performance of other 7 Brew stores, customer data, and information generated by the computer system or website. Franchisees must take reasonable steps to prevent improper disclosure of this information and use non-disclosure agreements with those who have access to it. Franchisees also need to disclose any ideas, concepts, techniques, or materials related to a 7 Brew store, as these innovations belong to 7 Brew.
The franchise agreement specifies that using confidential information in another business would constitute an unfair method of competition. Franchisees must keep confidential information absolutely confidential during and after the term of the agreement, and they must implement reasonable procedures to prevent unauthorized use or disclosure. This includes disclosing confidential information only to store personnel who need to know it and ensuring they sign confidentiality agreements.
This pre-approval right allows 7 Brew to maintain consistent standards across all franchise locations, protecting its brand and trade secrets. However, franchisees retain control over their employment agreements and labor relations, balancing brand protection with operational autonomy.