Which personnel of the Anago Subfranchise Rights Business must execute confidentiality covenants?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
All of your managers, field representatives and any personnel having access to our Confidential Information must execute covenants that they will maintain the confidentiality of all such information. We must be identified as a third-party beneficiary of such covenants with the independent right to enforce them. You are responsible for any unauthorized use and disclosure of Confidential Information by the employees and/or any owners of the Subfranchise Rights Business. You will supervise, manage, and control the day-today operations of the Subfranchise Rights Business and solely determine the methods and hours necessary to meet your obligations under your Subfranchise Rights Agreement and any other agreement. You are exclusively in charge of hiring and firing, scheduling, staffing, and management of your Subfranchise Rights Business employees, and the terms and conditions of their employment and their compliance with the brand standards.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, all managers, field representatives, and any personnel with access to Anago's confidential information must sign confidentiality covenants. These covenants ensure they maintain the secrecy of Anago's proprietary information. Anago must be identified as a third-party beneficiary in these agreements, giving Anago the independent right to enforce them.
This requirement extends to all current and future principals, employees, and agents of the Subfranchisor who are involved with the Subfranchise Business and have access to the Anago Manuals or other confidential information. These individuals must sign a non-disclosure and non-interference agreement before initial subfranchisor training or upon employment.
The franchisee is responsible for any unauthorized use or disclosure of confidential information by employees or owners of the Subfranchise Rights Business. This underscores the importance of carefully vetting employees and ensuring they understand and adhere to the confidentiality agreements. This is a common practice in franchising to protect the franchisor's trade secrets and operational methods.
For a prospective Anago subfranchisee, this means implementing a system to ensure all relevant personnel sign and adhere to these confidentiality agreements. Failure to do so could result in liability for unauthorized disclosure of confidential information, potentially leading to legal and financial repercussions.