What capacity must an associate desire to become involved with Apricot Lane or its franchisees to be subject to nondisclosure and noncompetition agreements?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
RECITALS
- 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 Apricot Lane's 2025 Franchise Disclosure Document, an associate who desires to become involved with Apricot Lane or one of its franchisees in several capacities will be subject to nondisclosure and noncompetition agreements. These capacities include being an officer, partner, director, agent, Manager, employee, or a beneficial owner of the Franchise Business. The agreement also applies to immediate family members or domestic partners of a principal owning a Franchise Business.
The FDD states that these associates will have access to certain Confidential Information and Trade Secrets. As a condition of being allowed to engage in a business relationship with Apricot Lane or its franchisees and use the franchisor's confidential information and trade secrets, the associate must agree to the terms of the nondisclosure and noncompetition agreements.
This agreement ensures that individuals with access to sensitive business information are legally bound to protect it and not use it to compete against Apricot Lane. This is a common practice in franchising to safeguard the franchisor's business model and protect the interests of other franchisees within the system.