Does the All States M.E.D. Franchise Agreement include a Schedule 2 that contains a Nondisclosure and Non-Competition Agreement?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
All States M.E.D. Franchise Agreement Schedule 2: Nondisclosure and Non-Compete Agreement
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. Franchisor shall be a third-party beneficiary with the right to enforce covenants contained in such agreements.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the Franchise Agreement does include a Schedule 2 that contains a Nondisclosure and Non-Compete Agreement. This agreement places restrictions on individuals associated with the franchisee regarding competition and disclosure of confidential information.
All States M.E.D. has the right to require any holder of 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, to execute a nondisclosure and non-competition agreement. This agreement must be in a form that is the same as or similar to the Nondisclosure and Non-Competition Agreement attached as Schedule 2. This agreement must be signed upon execution of the Franchise Agreement or prior to each person's affiliation with the franchisee.
All States M.E.D. will be a third-party beneficiary with the right to enforce the covenants contained within these agreements. The franchisee must keep copies of all signed nondisclosure and non-competition agreements on file at their business, where they are subject to audit or review. These measures are in place to protect All States M.E.D.'s trade secrets, confidential information, and overall business interests by preventing unfair competition and unauthorized disclosure of sensitive data.