Can Aplus communicate an individual's obligations under the agreement to any future customer or employer?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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. Such agreements shall remain on file at the offices of Franchisee and are subject to audit or review as otherwise set forth herein. Franchisor shall be a third party beneficiary with the right to enforce covenants contained in such agreements.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
Based on the 2024 Aplus Franchise Disclosure Document, Aplus has the right to require any holder of legal or beneficial interest in the franchisee, their immediate family, and any officer, director, executive, manager, member of the professional staff and all employees of the franchisee to execute a nondisclosure agreement. This agreement must be similar to the Non-Disclosure Agreement attached as Attachment 2. This must be done upon execution of the agreement or prior to each person's affiliation with the franchisee.
According to the FDD, Aplus, as the franchisor, is a third-party beneficiary with the right to enforce the covenants contained within these agreements. Franchisees must provide Aplus with copies of all Non-Disclosure agreements signed, and these agreements must remain on file at the franchisee's offices, subject to audit or review.
This means that Aplus can ensure confidentiality and protect its trade secrets and other confidential information by requiring individuals associated with the franchisee to sign non-disclosure agreements. This protects Aplus if a franchisee hires employees or engages with other individuals who could potentially expose Aplus's confidential information. The franchisee is responsible for maintaining these records and providing them to Aplus upon request.