Besides the franchisee, who else associated with the Azal Coffee franchise is required to keep the Confidential Information confidential?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
censes, or otherwise grants to others the right to operate a Competing Business; provided that, the restrictions in this Section will only apply within the Geographic Areas.
- c) The Franchisee Parties and their shareholders, officers, directors, members, managers, partners, owners, and investors, Family Members, and affiliates, must not, during the term of the Franchise Agreement and for a period of three (3) years after termination, expiration, non-renewal, or any other end of the Franchise Agreement, for any reason whatsoever, directly or indirectly: (a) divert or attempt to divert any business or customer of the Franchise Business or any other Store to any Competing Business by direct or indirect inducements or otherwise; (b) sponsor, appoint, or encourage or influence or promote friends, relatives, or associates to operate a Competing Business; or (c) employ any person or furnish or permit access to the Information to any person who is engaged or has arranged to become engaged in any activity in competition with Azal Coffee Stores, including involvement, either as an owner (except no more than one percent (1%) of the publicly traded securities of an entity), partner, director, officer, member, manager, employee, consultant, lender, representative, or agent, or in any other capacity, of any business that is involved, in whole or in part, in a Competing Business or in any business
- or entity that franchises, licenses, or otherwise grants to others the right to operate a Competing Business.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the confidentiality obligations extend beyond just the franchisee. The document specifies that the "Franchisee Parties" are responsible for maintaining the confidentiality of sensitive information.
The "Franchisee Parties" include not only the franchisee but also their shareholders, officers, directors, members, managers, partners, owners, and investors. Furthermore, the definition extends to Family Members and affiliates of the franchisee. Family Members include spouses, children, grandchildren, stepchildren, parents, siblings, spouse's parents, and spouse's siblings.
This broad definition means that a wide range of individuals connected to the Azal Coffee franchisee's business and personal life are legally bound to protect the franchisor's confidential information. This is a common practice in franchising to ensure that trade secrets and other sensitive data are not leaked through various relationships. The agreement extends for the duration of the Franchise Agreement and for a period of three years after termination, expiration, non-renewal, or any other end of the Franchise Agreement.