Does the B Bops franchise agreement specify the content of the non-disclosure and non-compete covenants?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidentiality. Under the terms of the Franchise Agreement, you are required to maintain the confidentiality of all trade secrets and proprietary information disclosed to you in connection with operation of the Franchise. You are prohibited from using such information and trade secrets in any other business or activity and must implement all reasonable procedures prescribed from time to time by the Company to prevent unauthorized use or disclosure of such information, including the requirement that your managerial employees execute nondisclosure and noncompete covenants as a condition of employment. If you are an entity such as a corporation, limited liability company or partnership, the confidentiality provisions are also applicable to each shareholder, member or partner and any other person required by the Company to execute the Personal Guaranty attached to the Franchise Agreement. The Development Agreement contains similar provisions concerning your obligation to maintain the confidentiality of the Company's proprietary information.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 37–39)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the Franchise Agreement mandates franchisees to maintain the confidentiality of all trade secrets and proprietary information disclosed to them during the operation of the franchise. Franchisees are prohibited from using this information in any other business or activity.
B Bops requires franchisees to implement reasonable procedures to prevent unauthorized use or disclosure of confidential information. This includes ensuring that managerial employees execute non-disclosure and non-compete covenants as a condition of their employment. If the franchisee is a corporation, limited liability company, or partnership, these confidentiality provisions also apply to each shareholder, member, or partner, as well as any person required by B Bops to execute the Personal Guaranty attached to the Franchise Agreement.
The Development Agreement also contains similar provisions regarding the franchisee's obligation to maintain the confidentiality of B Bops's proprietary information. However, the FDD does not specify the exact content, terms, or duration of these non-disclosure and non-compete covenants that managerial employees are required to sign. Prospective franchisees should inquire with B Bops about the specific terms and conditions of these covenants to fully understand their obligations and restrictions.