Before employment, who must sign covenants to maintain confidentiality of information they receive from Baya Bar?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
You must also obtain covenants not to compete, including covenants applicable on the termination of the person's relationship with you, from your General Manager and any of your other personnel who have received or will have access to our training before employment, and any holder of a beneficial interest in the franchise. You must have all of your management personnel sign covenants that they will maintain the confidentiality of information they receive or have access to based on their relationship with you. Our form of Confidentiality and Non-Competition Agreement is included as Attachment 9 to the Franchise Agreement. We have the right, in our discretion, to decrease the period of time or geographic scope of the non-competition covenants contained in the attachments or eliminate the non-competition covenants altogether for any party that must sign an agreement as described in this paragraph. We will be a thirdparty beneficiary to each of these agreements with the independent right to enforce each agreement's terms.
If your franchise is owned by an entity, all owners of the entity must personally sign the Franchise Agreement as a Principal. If you are a married individual, your spouse must sign our Spouse Guaranty, which is attached to our Franchise Agreement as Attachment 7.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 42–43)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, before employment, the General Manager and any other personnel who have received or will have access to Baya Bar's training must sign covenants to maintain the confidentiality of information they receive. Additionally, any holder of a beneficial interest in the franchise must also sign these covenants. These covenants also include agreements not to compete, which apply upon termination of the person's relationship with the franchisee.
Baya Bar requires franchisees to ensure that all management personnel sign covenants to maintain the confidentiality of information they receive or have access to through their relationship with the franchisee. The specific form for the Confidentiality and Non-Competition Agreement is included as Attachment 9 to the Franchise Agreement.
Baya Bar retains the right to modify or eliminate the non-competition covenants for any party required to sign the agreement. Furthermore, Baya Bar is a third-party beneficiary to each of these agreements, granting them the independent right to enforce the terms of each agreement. If the franchise is owned by an entity, all owners of the entity must personally sign the Franchise Agreement as a Principal, and if the franchisee is married, their spouse must sign the Spouse Guaranty attached to the Franchise Agreement as Attachment 7.