What is the consequence of violating the agreement related to confidential information and non-competition with Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisor is a third-party beneficiary of the Agreement and may enforce it solely and/or jointly with Franchisee. I am aware that my violation of the Agreement will cause Franchisor and Franchisee irreparable harm. I acknowledge and agree that Franchisor and/or Franchisee may apply for the issuance of an injunction preventing me from violating the Agreement in addition to any other remedies they may have at law or in equity. I will pay Franchisor and Franchisee all costs incurred including, without limitation, attorneys' fees, if the Agreement is enforced against me. Due to the importance of the Agreement to Franchisor and Franchisee, any claim I have against Franchisor or Franchisee is a separate matter and does not entitle me to violate, or justify any violation of, the Agreement. If any part of the Agreement is held invalid by a court or agency having valid jurisdiction, the rest of the Agreement is still enforceable, and the part held invalid is enforceable to the extent found reasonable by the court or agency. I agree that all the words and phrases used in the Agreement will have the same meaning as used in the Franchise Agreement and that such meanings have been explained to me.
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- Franchisor may reduce the scope of any covenant set forth in the Agreement in Franchisor's sole discretion without my consent effective immediately upon my receipt of written notice thereof. I will comply with any covenant as so modified.
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- The Agreement will be construed under the laws of Illinois. The only way the Agreement can be changed is in a writing signed by both Franchisee and me.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 36–39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, violating the Confidentiality and Non-Competition Agreement can lead to significant legal and financial repercussions. Beggars Pizza, as a third-party beneficiary of the agreement, has the right to enforce it against the franchisee's managers or personnel who have access to confidential information.
Specifically, if a manager or employee violates the agreement, Beggars Pizza and/or the franchisee can seek an injunction to prevent further breaches. This means a court order could be issued to stop the individual from continuing the actions that violate the agreement. Additionally, the violating party may be responsible for covering all costs incurred by Beggars Pizza and the franchisee in enforcing the agreement, including attorney's fees.
The agreement emphasizes that any claims the employee may have against Beggars Pizza or the franchisee are separate and do not justify violating the Confidentiality and Non-Competition Agreement. This underscores the importance of adhering to the agreement's terms, regardless of any disputes that may arise. The agreement is governed by Illinois law, and any modifications must be made in writing and signed by both the franchisee and the employee.