Does Annex Brands require franchisees to have employees and independent contractors sign a confidentiality agreement?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will require and obtain the execution of Franchisor's Non-Disclosure Agreement, prior to or from the date of employment, or prior to any promotion, of: any Business Manager of the Center; any other person employed by Franchisee who has received or will receive training from Franchisor; or any person with an ownership interest in the Franchise or Franchisee, and will provide a copy of each executed Non-Disclosure Agreement to Franchisor.
During the term of the Franchise, Franchisee will hold itself out to its 3) prospective employees, and to its employees, as an independent contractor operating the Center pursuant to rights granted by Franchisor, but not jointly with Franchisor.
Franchisee will take any reasonable action that Franchisor considers necessary to that end, including: (i) stating conspicuously on each employment application that the prospective employee is applying to be Franchisee's employee and not an employee of Franchisor; (ii) stating Franchisee's entire business name, rather than just using Franchisor's brand name and/or logo, on Franchisee's payroll checks and/or payroll-related communications to employees; and (iii) requiring employees to sign acknowledgements that they are not employees of Franchisor, even though they are selling products and services identified by Franchisor's brand name and/or logo, are receiving payroll checks and other communications that contain Franchisor's brand name and/or logo, may have applied for jobs through Franchisor's website, or may communicate with or receive non-mandatory feedback, coaching or recommendations from representatives of Franchisor in emails or other electronic or written communications, or during telephone calls, meetings or inspections.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 69–70)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees are required to ensure certain personnel sign a Non-Disclosure Agreement. Specifically, Annex Brands requires franchisees to obtain a signed Non-Disclosure Agreement from any Business Manager of the Center, any employee who receives training from Annex Brands, and any person with an ownership interest in the franchise or franchisee. The franchisee must provide a copy of each signed Non-Disclosure Agreement to Annex Brands.
Additionally, Annex Brands requires franchisees to ensure that their employees and independent contractors acknowledge they are employed by the franchisee, not Annex Brands. This acknowledgement must be in writing. Franchisees must state conspicuously on each employment application that the prospective employee is applying to be the franchisee's employee and not an employee of Annex Brands. Franchisees must also state their entire business name, rather than just using Annex Brands's brand name and/or logo, on payroll checks and/or payroll-related communications to employees.
These measures are in place to protect Annex Brands's confidential information and to clarify the relationship between Annex Brands and the franchisee's personnel. This is a fairly standard practice in franchising, as franchisors need to protect their trade secrets and other confidential information. It also ensures that employees understand who their employer is, which can help to avoid confusion and potential legal issues.