Does the confidentiality agreement for Antioch Pizza Shop extend to the franchisee's owners?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.1 Unless otherwise specified, the term "Developer" as used in this Section 9 shall include each and every Owner of Developer.
- 9.2 Developer specifically acknowledges that, pursuant to this Agreement, Developer will have access to the Confidential Information. Accordingly, Developer covenants that Developer and its Owners shall not, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, or entity:
- (a) own, maintain, operate, engage in, consult with or have any interest in (as disclosed or beneficial owner) any business which offers products or services which are the same as, or similar to, those offered by Antioch Pizza Shop Restaurants, or any entity which is granting franchises or licenses for any business which offers products or services which are the same as, or similar to, those offered by Antioch Pizza Shop Restaurants within the Development Area, or within a five and one-half (5 ½) mile radius of any existing Antioch Pizza Shop Restaurant, except under a validly existing Franchise Agreement with Franchisor. You acknowledge and agree that, after the date of this Agreement, other Antioch Pizza Shop Restaurants may open, thereby expanding the geographical area in which you will not be able to compete with us; and
- (b) directly or indirectly divert or attempt to divert any former business or customer of an Antioch Pizza Shop Restaurant to any competitive business.
The ownership of five percent (5%) or less of a publicly traded Franchisor will not be deemed to be prohibited by this paragraph.
9.3 Court Modification of Agreement**.** You agree that this form of Agreement is prepared for use in many jurisdictions with differing public policies and that such public policies change. Accordingly, you agree that the prevailing non-competition restrictions set forth above may be modified by a Court to the extent necessary to make the non-competition agreements valid and enforceable against you.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Antioch Pizza Shop Franchise Disclosure Document, the confidentiality agreement extends to the franchisee's owners. Specifically, the agreement stipulates that owners are bound by non-disclosure and non-competition obligations, ensuring that confidential information is protected and that neither the franchisee nor their owners engage in competitive businesses during the term of the agreement.
This means that the owners of an Antioch Pizza Shop franchise must also maintain the confidentiality of the franchisor's proprietary information and refrain from involvement in any competing businesses. This obligation is in place to protect Antioch Pizza Shop's trade secrets, operational methods, and market position. The franchisor may request copies of signed non-disclosure and/or non-competition agreements from owners, managers, or employees to ensure compliance.
Furthermore, post-termination covenants also apply to the owners, restricting them from engaging in similar businesses within a specified area for a certain period. This ensures that the knowledge and insights gained during the franchise operation cannot be used to unfairly compete with Antioch Pizza Shop after the franchise agreement ends. The term 'Developer' includes every Owner of Developer.