Under what conditions must a Baya Bar franchisee have their General Manager sign confidentiality covenants?
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.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 41–42)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a franchisee must obtain covenants not to compete from their General Manager and any other personnel who receive or will have access to Baya Bar's training before employment. These covenants must also apply upon the termination of the person's relationship with the franchisee. Additionally, any holder of a beneficial interest in the franchise must also sign these covenants.
Baya Bar requires that all management personnel sign covenants to maintain the confidentiality of information they receive or have access to based on their relationship with the franchisee. The specific form of the Confidentiality and Non-Competition Agreement is included as an attachment to the Franchise Agreement.
Baya Bar retains the right to decrease the period of time or geographic scope of the non-competition covenants or eliminate them altogether for any party that must sign an agreement. Baya Bar will be a third-party beneficiary to each of these agreements, with the independent right to enforce the terms of each agreement. This ensures Baya Bar can directly protect its interests and confidential information, even if the franchisee does not.