What does Attachment 2 to the Franchise Agreement for Aplus pertain to?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ge, operate, or perform services, consult with, or be employed by or for any Competitive Business located within 20 miles of the Franchised Business or any other APLUS store, for two years after termination or expiration of this Agreement; a Competitive Business that is owned by Franchisee or an affiliate at the time of the termination is excepted from this restriction. The two-year period shall be tolled during any event of non-compliance.
7.4. Nondisclosure Agreements with Certain Individuals
Franchisor has the right to require any holder of a legal or beneficial interest in Franchisee (and any member of their immediate families or households), and any officer, director, executive, manager, or member of the professional staff and all employees of Franchisee to execute a nondisclosure agreement, in a form the same as or similar to the Non-Disclosure Agreement attached as Attachment 2, upon execution of this Agreement or prior to each such person's affiliation with Franchisee. Upon Franchisor's request, Franchisee shall provide Franchisor with copies of all Non-Disclosure agreements signed pursuant to this Section 7.4.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Attachment 2 to the Franchise Agreement contains a standard form of non-disclosure agreement. Aplus has the right to require any holder of legal or beneficial interest in the franchisee, their immediate families, household members, officers, directors, executives, managers, professional staff, and all employees to execute this non-disclosure agreement. This agreement must be signed upon execution of the Franchise Agreement or before the person's affiliation with the franchisee.
Aplus requires franchisees to provide copies of all signed Non-Disclosure Agreements, which must be kept on file at the franchisee's offices and are subject to audit or review. Aplus is considered a third-party beneficiary and has the right to enforce the covenants within these agreements.
In addition, Aplus has the right to require certain individuals to execute standard form nondisclosure agreements in a form the same as or similar to the Nondisclosure Agreement attached as Attachment 2, in furtherance of Section 17 of the franchise agreement.