factual

What training must a Baya Bar franchisee provide to its employees regarding confidential information?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:

1. Confidentiality Agreement.

  • a. Covenantor shall, at all times, maintain the confidentiality of the Confidential Information and shall use such Confidential Information only in the course of his or her employment by or association with Franchisee in connection with the operation of a Franchised Business under the Franchise Agreement.
  • b. Covenantor shall not at any time make copies of any documents or compilations containing some or all of the Confidential Information without Franchisor's express written permission.
  • 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.
  • d. Covenantor shall surrender any material containing some or all of the Confidential Information to Franchisee or Franchisor, upon request, or upon termination of employment or association with Franchisee.

  • e. Covenantor shall not at any time, directly or indirectly, do any act or omit to do any act that would or would likely be injurious or prejudicial to the goodwill associated with the System.
  • f. Covenantor agrees that no Confidential Information may be reproduced, in whole or in part, without written consent.

2. Covenants Not to Compete.

  • a. In order to protect the goodwill and unique qualities of the System, and in consideration for the disclosure to Covenantor of the Confidential Information, Covenantor further agrees and covenants that during Covenantor's employment or association with Franchisee, Covenantor shall not, for Covenantor or through, on behalf of or in conjunction with any person or entity:

  • (i) divert, or attempt to divert, any business or customer of the Baya Bar outlet or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise, or

  • (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any café or business serving products similar to the System.

  • b. In further consideration for the disclosure to Covenantor of the Confidential Information and to protect the goodwill and unique qualities of the System, Covenantor further agrees and covenants that, upon the termination of Covenantor's employment or association with Franchisee and continuing for twenty-four (24) months thereafter, Covenantor shall not, for Covenantor or through, on behalf of or in conjunction with any person or entity:

  • (i) divert, or attempt to divert, any business or customer of the Franchised Business or of other franchisees in the Baya Bar System to any competitor, by direct or indirect inducement or otherwise, or

  • (ii) participate as an owner, partner, director, officer, employee, or consultant or serve in any other managerial, operational or supervisory capacity in any café or business serving products similar to the System within the within five (5) miles of Franchisee's Territory or any Baya Bar location.

Source: Item 22 — CONTRACTS (FDD page 56)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, franchisees must ensure their employees (referred to as "Covenantor" in the agreement) maintain the confidentiality of Baya Bar's Confidential Information. This includes the contents of the operations manual, System techniques, and other materials related to the Baya Bar system. Franchisees must obtain a written agreement from their employees protecting this information and the System against unfair competition.

The franchisee can only disclose Confidential Information to employees to the limited extent necessary for training and assisting them in operating the Franchised Business. Employees are prohibited from making copies of documents containing Confidential Information without Baya Bar's express written permission. Upon request or termination of employment, employees must surrender all materials containing Confidential Information to the franchisee or Baya Bar.

Furthermore, employees must not engage in any actions that could harm the goodwill associated with the Baya Bar system. They are also subject to non-compete covenants, preventing them from diverting business to competitors or participating in similar businesses during their employment and for 24 months after termination within a specific radius. These measures are in place to protect Baya Bar's trade secrets and maintain its competitive advantage within the market.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.