Does the associate need to have signed the Franchise Agreement or Guaranty and Assumption of Franchisee's Obligations form to be subject to the nondisclosure agreement with Apricot Lane?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Associate desires to become involved with the Franchisor or a franchisee of the Franchisor in the capacity of an officer, partner, director, agent, Manager, employee or as a beneficial owner of the Franchise Business, or is an immediate family member or domestic partner of a principal owning a Franchise Business, and will become privileged as to certain Confidential Information and Trade Secrets. Associate may or may not have signed the Franchise Agreement or Guaranty and Assumption of Franchisee's Obligations form; and
- B. Associate and the Franchisor have reached an understanding with regard to nondisclosure by Associate of Confidential Information and Trade Secrets and with respect to noncompetition by Associate with the Franchisor and other franchisees of the Franchisor. Associate agrees to the terms of this Agreement as partial consideration for the Franchisor's willingness to allow Associate to engage in a business relationship with Franchisor or a Franchisee of the Franchisor using the Franchisor's Confidential Information and Trade Secrets.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, an associate is subject to the nondisclosure agreement regardless of whether they have signed the Franchise Agreement or Guaranty and Assumption of Franchisee's Obligations form. The FDD specifies that an associate may or may not have signed these documents.
The document states that the associate desires to be involved with Apricot Lane or one of its franchisees as an officer, partner, director, agent, manager, employee, or beneficial owner of the franchise business. This also includes immediate family members or domestic partners of a principal owning a franchise business. Because of their position, they will have access to confidential information and trade secrets.
Apricot Lane requires the associate to agree to the terms of the nondisclosure agreement as consideration for being allowed to engage in a business relationship with Apricot Lane or its franchisee. This relationship involves using Apricot Lane's confidential information and trade secrets. The franchisor wants to protect its confidential information and trade secrets and ensure that the associate does not disclose this information or compete with Apricot Lane.