What is the relationship of Bang Cookies Franchise LLC to the Confidentiality Agreement?

According to Bang Cookies' 2024 Franchise Disclosure Document, Bang Cookies Franchise LLC is not a party to the sample Confidentiality Agreement provided in the FDD, but is designated as an intended third-party beneficiary. This agreement is intended for use between the franchisee and their employees or contractors. The agreement aims to protect Bang Cookies' confidential information by preventing its unauthorized disclosure.

Specifically, the sample Confidentiality Agreement states that the franchisee independently owns and operates the Bang Cookies Business. The agreement is between the franchisee (referred to as "us", "our", or "we") and the employee or contractor (referred to as "you"). The agreement acknowledges that the employee or contractor may gain access to confidential information and that protecting this information is necessary.

As a third-party beneficiary, Bang Cookies Franchise LLC has rights under the Confidentiality Agreement, even though they are not a direct party to it. This means Bang Cookies can enforce the agreement against the franchisee's employees or contractors if they breach the confidentiality terms. The FDD recommends that franchisees have the agreement reviewed by an independent local attorney before using it with an employee or contractor.

Furthermore, the Franchise Agreement stipulates that franchisees must notify Bang Cookies of any known or suspected breaches of the Confidentiality Agreement. Franchisees must also take reasonable steps to prevent violations, including consulting with their legal counsel. Failure to comply with these obligations can be considered a breach of the Franchise Agreement.