What rights does 7 Brew have regarding non-disclosure agreements used by franchisees to protect 7 Brew Confidential Information?

According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew has the right to pre-approve non-disclosure agreements that franchisees use. This right is specifically to ensure that the agreements adequately protect 7 Brew's Confidential Information and maintain the competitiveness of 7 Brew stores. However, 7 Brew does not have the right to control the forms or terms of employment agreements franchisees use with their store employees, and 7 Brew is not responsible for the franchisee's labor relations or employment practices.

This means that while franchisees are required to use non-disclosure agreements to safeguard 7 Brew's sensitive business information, 7 Brew retains oversight to guarantee these agreements meet their standards for protection. This is a fairly common practice in franchising, as franchisors need to protect their trade secrets and operational methods.

For a prospective franchisee, this implies that any non-disclosure agreement they intend to use must be submitted to 7 Brew for approval. Franchisees should factor in the time required for this approval process when onboarding employees or contractors who will have access to Confidential Information. Franchisees should also be aware that 7 Brew's approval is limited to the protection of Confidential Information and does not extend to other aspects of employment agreements or labor relations.