Is the form of the nondisclosure and non-competition agreement that All States M.E.D. requires individuals to execute attached as Schedule 2?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
hised Business to
any Competitive Business, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks or the System.
7.4 Nondisclosure and Non-Competition Agreements with Certain Individuals
Franchisor has the right to require any holder of a legal or beneficial interest in Franchisee, and any officer, director, executive, manager or member of the professional staff and all employees of Franchisee to execute a nondisclosure and non-competition agreement, in a form the same as or similar to the Nondisclosure and Non-Competition Agreement attached as Schedule 2, upon execution of this Agreement or prior to each such person's affiliation with Franchisee. Upon Franchisor's request, Franchisee shall provide Franchisor with copies of all nondisclosure and non-competition agreements signed according to this Section. Such agreements shall remain on file at the business of Franchisee and are subject to audit or review as otherwise stated here.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the Nondisclosure and Non-Competition Agreement is attached as Schedule 2. Specifically, All States M.E.D. has the right to require any individual with legal or beneficial interest in the franchisee, as well as any officer, director, executive, manager, member of professional staff, and all employees to sign a Nondisclosure and Non-Competition Agreement. This agreement must be in a form that is the same as or similar to the agreement attached as Schedule 2.
This agreement is required upon the execution of the Franchise Agreement or before the person's affiliation with the franchisee. All States M.E.D. also requires that the franchisee provide copies of all signed nondisclosure and non-competition agreements upon request. These agreements must be kept on file at the franchisee's business and are subject to audit or review. All States M.E.D. is considered a third-party beneficiary and has the right to enforce the covenants within these agreements.
The Nondisclosure and Non-Competition Agreement includes restrictions related to trade secrets, confidential information, and competition. These restrictions apply both during the individual's relationship with the franchisee and for a period of time after the relationship ends. The agreement specifies that individuals are prohibited from diverting business, offering competitive services within a certain radius, and soliciting business associates of the franchisee or All States M.E.D.