What is the employee's obligation regarding the confidentiality of trade secrets and Confidential Information related to Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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WHEREAS, we desire to employ or engage you, and you desire to be employed or engaged by us, in connection with the operation of our franchised business.
NOW, THEREFORE, in consideration of the recitals above and the terms below, you and we acknowledge and agree:
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- Acknowledgement That You Are Our Employee or Independent Contractor, and That You Are Not an Employee or Independent Contractor of Franchisor. You acknowledge that you are our employee or independent contractor, and that you are not an employee or independent contractor of Franchisor, even though you will be selling products and services identified by Franchisor's brand name and/or logo, may be receiving payroll checks or other communications that contain Franchisor's brand name and/or logo, may have applied for employment or engagement by us through Franchisor's website, or may communicate with or receive nonmandatory feedback, coaching or recommendations from representatives of Franchisor in emails or other electronic or written communications, or during telephone calls, meetings or inspections.
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- 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.
Source: Item 23 — Receipts (FDD pages 110–299)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, employees of an Annex Brands franchisee have specific obligations regarding trade secrets and confidential information. These obligations are outlined in a confidentiality and non-competition agreement that the employee must agree to as a condition of their employment. The employee acknowledges that the methods of doing business and other elements of the Annex Brands system are distinctive and valuable, developed at significant effort and expense by Annex Brands and its franchisees.
The agreement stipulates that the employee will have regular access to valuable trade secrets, confidential information, and training related to the Annex Brands system. As such, the employee agrees never to use, disseminate, or disclose any trade secrets or confidential information, including customer names, customer information, and business methods, to any person or entity, either during or after their employment. The employee is obligated to always seek to preserve the confidentiality of these trade secrets and confidential information.
Furthermore, during their employment, the employee is prohibited from diverting or attempting to divert any business or customer of the franchisee to any competitor or other person. This includes direct or indirect inducement. However, the employee is not prevented from referring customers in good faith to other businesses, including competitors, that may be able to provide products or services not available from the Annex Brands business. This ensures that while protecting Annex Brands's interests, the employee can still act in the customer's best interest by suggesting alternatives when necessary.