Does 7 Brew have the right to pre-approve confidentiality agreements used by franchisees with their employees?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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 agreements that franchisees use with their employees and others who have access to the company's confidential information. This pre-approval is solely to ensure that the franchisee adequately protects 7 Brew's confidential information and the competitiveness of 7 Brew stores. An acceptable sample of the confidentiality agreement is attached as Exhibit D.
However, 7 Brew does not have the right to control the forms or terms of employment agreements that franchisees use with their store employees. Additionally, 7 Brew will not be responsible for the franchisee's labor relations or employment practices.
This means that while 7 Brew wants to ensure its confidential information is protected by requiring a review of confidentiality agreements, the franchisee maintains control over their employment agreements and labor relations.