What must the Confidentiality and Non-Competition Agreement cover for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
retains the right to pre-approve FRANCHISEE's use of linking and framing between FRANCHISEE's Web pages and all other Web sites. FRANCHISEE shall, within five (5) days after a request by ATFC, dismantle any frames and links between FRANCHISEE's Web pages and any other Web sites.
X. TRADE SECRETS
FRANCHISEE shall not, during the term of this Agreement, or after termination, expiration of the Agreement or Transfer, communicate or divulge to anyone, any information or knowledge concerning the products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, clients, rates, fees and terms and other information or material which ATFC may designate as confidential, including the Confidential Operations Manual, nor shall FRANCHISEE disclose or divulge in whole or in part any trade secrets or operating procedures of ATFC or its affiliates, customer lists, sales and promotional information, employee lists, financial information furnished or disclosed to FRANCHISEE by ATFC and any other information with respect of ATFC, unless such information is generally known and in the public domain, and except to the extent necessary to operate the Agency ("Confidential Information"). All employees of FRANCHISEE will exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all trade secrets and proprietary rights during and after the term of this Agreement, and shall require all supervisory personnel to execute a Confidentiality and Non-Compete Agreement in a form acceptable to ATFC.
XI. NON-COMPETITION
A. Competing Business During the Term of This Agreement.
Source: Item 15 — OBLIGATION OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF YOUR BUSINESS (FDD pages 27–28)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, all supervisory personnel and key employees (staffing manager, sales manager, office manager) must execute a Confidentiality and Non-Competition Agreement in a form acceptable to All Team. This agreement relates to trade secrets and non-competition. The franchisee and their employees must maintain the confidentiality of All Team's confidential information. This obligation extends both during and after the term of the Franchise Agreement.
The agreement ensures that franchisees and their staff do not disclose or misuse sensitive information that could harm All Team's business interests. This includes but is not limited to knowledge concerning products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, clients, rates, fees, and terms. It also covers customer lists, sales and promotional information, employee lists, and financial information.
The non-competition aspect of the agreement prevents franchisees and their employees from engaging in similar or competing businesses during and for a certain period after the franchise term. This protects All Team's market share and prevents franchisees from using the franchisor's expertise to directly compete against them. The agreement is a standard practice in franchising to protect the franchisor's proprietary information and market position.
Prospective franchisees should carefully review the terms of the Confidentiality and Non-Competition Agreement to understand the full scope of their obligations and restrictions. They should also seek legal counsel to ensure they fully understand the implications of the agreement before signing the Franchise Agreement.