What form should the non-disclosure and non-competition agreement take for All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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. Franchisor shall be a third-party beneficiary with the right to enforce covenants contained in such agreements.
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 franchisor has the right to require certain individuals to execute a non-disclosure and non-competition agreement. These individuals include anyone holding a legal or beneficial interest in the franchisee, as well as any officer, director, executive, manager, member of the professional staff, and all employees of the franchisee.
The agreement must be in a form that is the same as or similar to the Nondisclosure and Non-Competition Agreement attached as Schedule 2 of the Franchise Agreement. Franchisees must provide All States M.E.D. with copies of all signed agreements upon request, and these agreements must be kept on file at the franchisee's business location, where they are subject to audit or review.
All States M.E.D. is a third-party beneficiary of these agreements, which means they have the right to enforce the covenants within them. This ensures that All States M.E.D. can protect its confidential information, trade secrets, and competitive advantages by holding these individuals accountable for adhering to the terms of the non-disclosure and non-competition agreements.