From whom must a Baya Bar franchisee obtain non-compete covenants similar to those in Section 19?

According to Baya Bar's 2024 Franchise Disclosure Document, a franchisee must obtain non-compete covenants similar to those in Section 19 from all employees, contractors, or third persons who will have access to Baya Bar's confidential and proprietary information. These covenants must also apply upon the termination of a person's employment with the franchisee.

The FDD specifies that these covenants should be substantially in the form set forth in Attachment 10, as revised and updated from time to time and contained in the Manual. This ensures that individuals with access to sensitive information are legally bound to protect it, even after they are no longer associated with the Baya Bar franchise.

This requirement is designed to protect Baya Bar's business interests and maintain the integrity of its system. By mandating non-compete agreements for those with access to confidential information, Baya Bar aims to prevent the dissemination of proprietary knowledge to competitors, which could harm the brand's competitive advantage and goodwill. Franchisees must ensure compliance with this requirement to avoid potential legal repercussions and to uphold the standards of the Baya Bar franchise system.