If Aplus requests it, is the Franchisee required to provide copies of all Non-Disclosure agreements signed pursuant to Section 7.4?
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)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are required to provide copies of all Non-Disclosure Agreements (NDAs) signed under Section 7.4 if Aplus requests them. This section pertains to NDAs that Aplus has the right to require from individuals associated with the franchisee. These individuals include anyone holding a legal or beneficial interest in the franchisee, their immediate family members, and the franchisee's officers, directors, executives, managers, professional staff, and all employees.
The NDAs must be in a form similar to the Non-Disclosure Agreement attached as Attachment 2 in the FDD. These agreements are to be executed upon the execution of the franchise agreement or before the individual's affiliation with the franchisee. The franchisee must keep these agreements on file and they are subject to audit or review.
Aplus is considered a third-party beneficiary of these NDAs, which means Aplus has the right to enforce the covenants within these agreements. This requirement ensures that Aplus can maintain confidentiality and protect its trade secrets and other sensitive information by having access to and the ability to enforce these NDAs with individuals associated with the franchisee.