Does 7 Brew have the right to pre-approve the forms of confidentiality agreements used by the franchisee?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We will give you access to our Operations Manual, available in hardcopy and/or through the System Website (defined in Section 13.E). Any passwords or digital identifications necessary to access the Operations Manual are considered part of Confidential Information. The Operations Manual may consist of and is defined to include audio, video, computer software, other electronic and digital media, and/or written and other tangible materials. The Operations Manual contains mandatory and suggested specifications, standards, operating procedures, and rules we periodically issue for developing and operating a 7 BREW Store ("Brand Standards") and information on your other obligations under this Agreement. We may modify the Operations Manual periodically to reflect changes in Brand Standards, but those modifications will not alter your fundamental rights or status under this Agreement. You agree to keep current your copy of the Operations Manual (if any materials are delivered in hardcopy) and timely communicate all updates to your employees. You must monitor the System Website and our other communications periodically for updates to the Operations Manual or Brand Standards. 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 does have the right to pre-approve the forms of confidentiality agreements that franchisees use. This applies specifically to agreements used with store employees and others who have access to the franchisor's confidential information. The purpose of this pre-approval is to ensure that the agreements adequately protect the confidential information and maintain the competitiveness of 7 Brew stores. An acceptable sample form of the confidentiality agreement is included as Exhibit D in the FDD.
This provision means that as a 7 Brew franchisee, you must use confidentiality agreements that meet 7 Brew's standards for protecting their proprietary information. While you can choose the individuals who need to sign these agreements, the forms themselves are subject to the franchisor's review and approval. This is a fairly standard practice in franchising, as franchisors need to safeguard their trade secrets and operational methods.
However, it is important to note that 7 Brew's right to pre-approve confidentiality agreements does not extend to employment agreements. The FDD explicitly states that 7 Brew will not control the forms or terms of employment agreements franchisees use with store employees, nor will they be responsible for labor relations or employment practices. This distinction ensures that franchisees retain control over their employees' terms of employment, while 7 Brew maintains control over the protection of its confidential information.