If Baya Bar asks, must a franchisee have their General Manager sign confidentiality covenants?

According to Baya Bar's 2024 Franchise Disclosure Document, franchisees must ensure their General Manager and certain personnel sign confidentiality covenants if Baya Bar requests it. Specifically, this applies to the General Manager and any personnel who have received or will have access to confidential information.

The purpose of these covenants is to protect the confidential information and trade secrets of the Baya Bar system. The FDD states that a standard form of Confidentiality and Non-Competition Agreement is included as an attachment to the Franchise Agreement. Baya Bar also retains the right to modify or eliminate these non-competition covenants for any party required to sign the agreement.

This requirement ensures that key personnel with access to sensitive information are legally bound to protect it, even after their employment ends. The franchisee is responsible for ensuring compliance with this requirement. Baya Bar is a third-party beneficiary to these agreements and has the independent right to enforce their terms. This is a fairly standard practice in franchising, as franchisors need to protect their proprietary information and operational methods.