factual

What is an employee of a Beggars Pizza franchisee obligated to do with confidential information?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

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.

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.

While in my position with Franchisee and for two (2) years after I cease to be in my position with Franchisee, I will not own, maintain, operate, engage in, be employed by, provide any assistance or advise to, or have any interest in (as owner or otherwise) any business that

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, as an employee of a Beggars Pizza franchisee, you will receive valuable confidential information, and you must hold all information designated as confidential by Beggars Pizza or the franchisee in strict confidence. Unless Beggars Pizza agrees otherwise in writing, you can only disclose and/or use confidential information in connection with your duties as an employee of the franchisee. This obligation is a condition of your employment and continues even after you are no longer employed by the franchisee. Confidential information includes, but is not limited to, information relating to 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.

This agreement does not prevent you from disclosing confidential information of the franchisee and Beggars Pizza directly to a federal or state regulatory agency, law enforcement authority, or legislative body if it is necessary to report potential violations of applicable law or assist in governmental investigative, enforcement, or oversight efforts. While employed by the franchisee, you cannot do anything that may harm the franchisee or Beggars Pizza, such as diverting business to a competitor or performing any act that is injurious or prejudicial to the goodwill associated with Beggars Pizza's marks and the System.

Furthermore, while employed and for two years after leaving employment, you are prohibited from owning, maintaining, operating, engaging in, being employed by, providing assistance or advice to, or having any interest in any business that offers or sells pizza, pizza products, Italian-style food, or other food items that are the same as or similar to those offered by Beggars Pizza restaurants. This restriction applies if the business is located within the franchisee's territory, within a 10-mile radius of the franchisee's Beggars Pizza restaurant, or within a 10-mile radius of any business operating under Beggars Pizza's marks. Beggars Pizza is considered a third-party beneficiary of this agreement and can enforce it jointly or solely with the franchisee. Violating this agreement can cause irreparable harm to both Beggars Pizza and the franchisee, and they may seek an injunction to prevent further violations, in addition to any other legal or equitable remedies.

Disclaimer: This information is extracted from the 2025 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.