What is a Benihana franchisee required to do as a condition of employment for certain employees regarding confidential information?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.4.3 As a condition of employment, Franchisee must require Franchisee's General Manager, any other personnel employed by Franchisee who has received or will receive training from BNC, and any personnel having access to any Confidential Information to execute covenants that they will maintain the confidentiality of information they receive in connection with their employment at the Restaurant.
At BNC's option, BNC may require that such confidentiality and restrictive covenant agreements be in the form attached to this Agreement as Exhibit F, which form includes specific identification of BNC as a third-party beneficiary of such covenants with the independent right to enforce them.
Franchisee must provide BNC with a copy of all executed covenants within five (5) days after hiring any such General Manager or other employees.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, as a condition of employment, a Benihana franchisee must ensure that their General Manager, any personnel who receive training from Benihana National Corp. (BNC), and any personnel with access to confidential information execute covenants to maintain the confidentiality of information they receive during their employment at the restaurant.
Benihana, at its option, may require that these confidentiality and restrictive covenant agreements be in a specific form attached to the Franchise Agreement as Exhibit F. This form identifies BNC as a third-party beneficiary, granting them the independent right to enforce these covenants.
The franchisee is obligated to provide Benihana with a copy of all executed covenants within five days of hiring the General Manager or other employees subject to these requirements. This ensures that Benihana has a record of the agreements and can enforce them if necessary. This requirement is in place to protect Benihana's trade secrets and confidential information.