factual

Does the Employee/Independent Contractor Confidentiality and Non-Competition Agreement for Annex Brands require the employee to recognize their obligation to develop the franchised business?

Annex_Brands Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Covenants Not to Disclose; Covenants Not to Compete. You agree that certain methods of doing business and other elements comprising the System are distinctive and have been developed by Franchisor and us at great effort, skill, time and expense; that you will have regular and continuing access to valuable trade secrets, Confidential Information and valuable training regarding the System; and that you recognize your obligation to promote and develop our franchised business. You accordingly agree as follows:
    • (a) Except as required in duties performed for us, you will never, either during or after the term or engagement or employment, either directly or indirectly, use, or disseminate or disclose to any person or entity, any trade secrets or Confidential Information, including but not limited to customer names, other customer information and business methods, of Franchisor or us, and will always seek to preserve the confidentiality of those trade secrets and Confidential Information.
    • (b) During your engagement or employment, you will not, directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or entity, divert or attempt to divert any business or customer of ours to any competitor or other person by direct or indirect inducement or otherwise, but this Section will not prevent you from referring customers in good faith to other businesses, including but not limited to competitors' businesses, that may be able to provide those customers with products or services not available from our business.

Source: Item 23 — Receipts (FDD pages 110–299)

What This Means (2025 FDD)

According to Annex Brands' 2025 Franchise Disclosure Document, the Employee/Independent Contractor Confidentiality and Non-Competition Agreement does require the employee to recognize their obligation to promote and develop the franchised business. Specifically, the agreement states that the employee acknowledges that certain methods of doing business are unique to Annex Brands and that the employee will have access to valuable trade secrets and training.

In practical terms, this means that as an Annex Brands franchisee, you must ensure that your employees understand and agree to their responsibility in contributing to the growth and success of your specific franchise location. This obligation is formalized in the agreement they sign.

This requirement is fairly standard in franchising, as franchisors want to protect their brand and system by ensuring that employees are committed to the success of the business and do not misuse confidential information or compete unfairly. The agreement also outlines the employee's commitment to not disclosing confidential information and not competing with the franchised business during and after their employment or engagement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.