What is the Benihana franchisee required to do regarding confidentiality agreements with their General Manager and personnel having access to Confidential Information?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) As a condition of employment, Franchisee shall require Franchisee's General Manager 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.
Such covenants shall 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 shall provide BNC with a copy of all executed covenants within five days after hiring any such General Manager and/or employees.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees must ensure their General Manager and any personnel with access to confidential information sign agreements to maintain confidentiality as a condition of employment. These agreements must identify Benihana as a third-party beneficiary, granting Benihana the independent right to enforce these covenants. The specific form for these agreements is attached as Exhibit F to the franchise agreement.
Benihana franchisees are required to provide Benihana with copies of all executed confidentiality agreements within five days of hiring a General Manager or any employee with access to confidential information. This requirement ensures Benihana is aware of who has access to their confidential information and that these individuals are bound by confidentiality agreements.
These measures are in place to protect Benihana's trade secrets and confidential information, which Benihana considers vital to maintaining a competitive advantage. By requiring these agreements, Benihana aims to prevent the unauthorized disclosure or use of its proprietary information, which could harm the Benihana system and its franchisees.