Are confidentiality provisions applicable to the day-to-day manager of a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
mation about them in our current disclosure document.
EXHIBIT C
CONFIDENTIALITY AND NON-COMPETITION AGREEMENT
(for execution by Franchisee's managers and other personnel having access to Franchisor's Confidential Information)
In consideration of my position as of ("Franchisee"), and One Dollar, receipt of which is acknowledged, I hereby acknowledge and agree that:
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- Beggars Pizza Franchise, LLC ("Franchisor"), as the result of the expenditure of time, skill, effort, and money, has developed, and continues to develop, a distinctive system relating to the establishment, operation, and promotion of Beggars Pizza® restaurants that offer pizza and other food products and non-alcoholic and alcoholic beverages for sale and consumption on the premises, for carry-out sale to customers, for consumption off the premises, for delivery to customers, for catering, for sale and consumption off the premises at temporary locations for fund raising and other special events, and such sale in such other ways as Franchisor may specify from time to time, all of which may be changed, improved, and further developed by Franchisor from time to time (the "System").
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- As an employee of Franchisee, I will receive valuable confidential information, disclosure of which would be detrimental to Franchisor and Franchisee, such as information relating to the Manual, recipes, ingredients, cooking procedures, customer lists, drawings, materials, or equipment of Franchisor and the System related to the establishment and operation of Beggars Pizza® restaurants, which are beyond the present skills and experience possessed by me (the "Confidential Information"). This list of confidential matters is illustrative only and does not include all matters considered confidential by Franchisor and Franchisee.
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- I will hold in strict confidence all information designated by Franchisor or Franchisee as confidential. Unless Franchisor otherwise agrees in writing, I will disclose and/or use Confidential Information only in connection with my duties as an employee of Franchisee. My undertaking not to disclose Confidential Information is a condition of my position with Franchisee, and continues even after I cease to be in that position. Notwithstanding the foregoing, nothing in this Agreement prohibits me from disclosing confidential information of Franchisee and Franchisor directly to a federal or state regulatory agency, law enforcement authority, or legislative body to the extent necessary to report potential violations of applicable law or assist in governmental investigative, enforcement, or oversight efforts.
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- While in my position with Franchisee, I will not do anything that may injure Franchisee or Franchisor, such as (a) divert or attempt to divert any present or prospective business or customer of any Beggars Pizza® restaurant to any competitor, by direct or indirect inducement or otherwise; or (b) directly or indirectly perform any other act injurious or prejudicial to the goodwill associated with Franchisor's marks and the System.
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Source: Item 15 — OBLIGATIONS TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, confidentiality provisions do apply to the franchisee's managers and other personnel who have access to the franchisor's confidential information. Exhibit C is a Confidentiality and Non-Competition Agreement that is to be executed by the franchisee's managers and other personnel having access to Beggars Pizza's confidential information.
The agreement states that as an employee of the franchisee, the manager will receive valuable confidential information, disclosure of which would be detrimental to Beggars Pizza and the franchisee. This information includes the manual, recipes, ingredients, cooking procedures, customer lists, drawings, materials, or equipment of Beggars Pizza and the System related to the establishment and operation of Beggars Pizza restaurants. The manager must hold all information designated by Beggars Pizza or the franchisee as confidential in strict confidence and can only disclose and/or use Confidential Information in connection with their duties as an employee of the franchisee, unless Beggars Pizza otherwise agrees in writing.
The agreement specifies that the manager's undertaking not to disclose Confidential Information is a condition of their position with the franchisee and continues even after they cease to be in that position. However, the agreement does not prohibit the manager from disclosing confidential information of the franchisee and Beggars Pizza directly to a federal or state regulatory agency, law enforcement authority, or legislative body to the extent necessary to report potential violations of applicable law or assist in governmental investigative, enforcement, or oversight efforts. While in their position with the franchisee, the manager cannot do anything that may injure the franchisee or Beggars Pizza, such as diverting business to a competitor or performing any act injurious to the goodwill associated with Beggars Pizza's marks and the System. For two years after ceasing employment with the franchisee, the manager is restricted from involvement with any competing business.