Can Beggars Pizza Franchise, LLC enforce the Confidentiality and Non-Competition Agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 36–39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza Franchise, LLC can enforce the Confidentiality and Non-Competition Agreement, as they are a third-party beneficiary of the agreement. This agreement is executed by the franchisee's managers and other personnel who have access to Beggars Pizza's confidential information. The agreement states that as an employee of the franchisee, individuals will receive valuable confidential information, and they must hold this information in strict confidence. This includes information relating to the manual, recipes, ingredients, cooking procedures, customer lists, drawings, materials, or equipment of Beggars Pizza restaurants.
The agreement specifies that employees cannot engage in activities that may harm the franchisee or Beggars Pizza, such as diverting business to competitors or performing acts prejudicial to the goodwill associated with Beggars Pizza's marks and system. For a period of two years after leaving their position with the franchisee, employees are prohibited from owning, operating, or being involved with any business that offers similar food items to Beggars Pizza and is located within the franchisee's territory or within a 10-mile radius of any Beggars Pizza restaurant.
The agreement also states that Beggars Pizza can seek an injunction to prevent violations and recover all costs, including attorney's fees, if the agreement is enforced. Any claims the employee has against Beggars Pizza or the franchisee do not justify violating the agreement. The agreement is governed by Illinois law and can only be modified in writing signed by both the franchisee and the employee. Beggars Pizza also has the right to reduce the scope of any covenant set forth in the agreement at its sole discretion with written notice.