For Apricot Lane franchises, does the franchisor have the right to require confidentiality agreements, including covenants not to compete, from the franchisee's personnel performing managerial or supervisory functions?

According to Apricot Lane's 2025 Franchise Disclosure Document, the franchisor has the right to require confidentiality agreements, including covenants not to compete, from certain personnel. Specifically, Apricot Lane can require all of a franchisee's personnel performing managerial or supervisory functions to execute confidentiality agreements. These agreements must be in a form satisfactory to Apricot Lane.

In addition to managerial and supervisory personnel, Apricot Lane can also require confidentiality agreements from all personnel receiving training from the franchisor. Certain family members of the franchisee or its owners may also be required to sign these agreements. A sample of the confidentiality agreement is attached as Exhibit H to the Franchise Disclosure Document.

This provision allows Apricot Lane to protect its confidential information and trade secrets by ensuring that those with access to sensitive information are legally bound to maintain its confidentiality and not compete with the franchise during or after their association with it. Prospective franchisees should carefully review Exhibit H to understand the scope and terms of the confidentiality and non-compete agreements that Apricot Lane may require their personnel to sign.