What must Baya Bar franchisees do before disclosing confidential information to employees?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- c. Covenantor shall not at any time disclose or permit the disclosure of the Confidential Information except, and only then to the limited extent necessary, to those employees of Franchisee for training and assisting such employees in the operation of the Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a franchisee must first obtain a written agreement from the employee (referred to as 'Covenantor') protecting the confidential information and the Baya Bar system against unfair competition before disclosing any confidential information to them. This agreement ensures that employees understand the importance of maintaining the confidentiality of the information they receive during their training and employment.
The agreement also specifies that the employee can only disclose confidential information to the extent necessary for training and assisting other employees in the operation of the franchised business. This clause aims to limit the spread of sensitive information within the Baya Bar franchise network, ensuring that only those who need to know the information have access to it.
Furthermore, the agreement mandates that the employee must not make copies of any documents containing confidential information without the franchisor's express written permission. Upon request or termination of employment, the employee must surrender all materials containing confidential information to the franchisee or franchisor. This provision reinforces the control Baya Bar maintains over its proprietary information and helps prevent unauthorized use or dissemination of that information.