What is the Benihana franchisee's obligation regarding confidentiality agreements with their General Manager and other personnel?
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 are obligated to ensure that their General Manager and any personnel with access to confidential information sign agreements to maintain the confidentiality of that information. These agreements must be in the form attached to the Franchise Agreement as Exhibit F.
Benihana is explicitly identified as a third-party beneficiary in these confidentiality agreements, granting Benihana the independent right to enforce them. This means Benihana can directly take action against an employee who violates the agreement, even if the franchisee does not.
Franchisees must provide Benihana with a copy of all executed confidentiality agreements within five days of hiring the General Manager or any other employee who has access to confidential information. This requirement ensures that Benihana has records of these agreements and can readily enforce them if necessary. This is a fairly standard practice in franchising, as franchisors need to protect their trade secrets and operational methods.