What form should the confidentiality agreements between a Bb.Q Chicken franchisee and their employees take?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
You and Principal(s) covenant and agree that You and the Principal(s) shall not, during the term of this Agreement and thereafter, communicate or divulge to, or use for the benefit of, any other person or entity, and, following the expiration or termination of this Agreement, shall not use for their own benefit, any Confidential Information that may be communicated to You or Principal(s) or of which You or Principal(s) may be apprised in connection with the operation of the Franchised Business under the terms of this Agreement. You and the Principal(s) shall not divulge and make any Confidential Information available to anyone other than those of Franchisee's employees who require the Confidential Information to operate the Franchised Business and who have themselves entered into confidentiality and non-compete agreements containing the same provisions as contained in this Agreement, in accordance with 10.2.2 hereof. You and the Principal(s) shall not at any time copy, duplicate, record or otherwise reproduce any Confidential Information, in whole or in part, or otherwise make the same available to any person other than those authorized above, without Franchisor's prior written consent. The covenants in this Section 19.2 shall survive the expiration, termination or transfer of this Agreement or any interest herein and shall be perpetually binding upon Franchisee and each Principal.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, franchisees must ensure their employees who require access to confidential information sign confidentiality and non-compete agreements. These agreements must contain the same provisions as those in the franchise agreement itself. This requirement ensures that the franchisee's staff is bound by the same confidentiality standards as the franchisee and its principals.
The FDD specifies that franchisees and their principals acknowledge they will have access to Bb.Q Chicken's trade secrets, including recipes, methods, processes, customer lists, vendor partnerships, sales and technical information, financial data, costs, pricing formulas, equipment, technologies, procedures, manuals, advertising and promotion methods, and instructional materials. This information, whether or not specifically designated as confidential, is considered Confidential Information. Franchisees and principals must not disclose or use this information for the benefit of any other person or entity during the term of the agreement or for their own benefit after the agreement expires or terminates.
Bb.Q Chicken franchisees are responsible for ensuring that their employees who have access to this confidential information are also bound by similar confidentiality and non-compete agreements. This protects Bb.Q Chicken's proprietary information and trade secrets. The confidentiality agreements with employees must mirror the provisions in the franchise agreement to ensure consistent protection of sensitive business information. These covenants survive the expiration, termination, or transfer of the Franchise Agreement and are perpetually binding.
In practical terms, a Bb.Q Chicken franchisee needs to have legally sound confidentiality and non-compete agreements drafted for their employees. These agreements should be carefully reviewed to ensure they align with the requirements outlined in Section 19.2 of the Franchise Agreement. Franchisees should consult with legal counsel to create these agreements and ensure they are enforceable under applicable laws.