Can a Better Blend franchisee's general manager be required to sign a confidentiality and non-compete agreement?

According to Better Blend's 2024 Franchise Disclosure Document, a franchisee may be required to have their general manager and other key employees sign a confidentiality and non-compete agreement. Specifically, if Better Blend requests it, the franchisee must ensure that their general manager and other key employees that Better Blend reasonably designates sign Better Blend's current confidentiality and non-compete agreement. This requirement is subject to applicable laws, meaning that if local or state laws prohibit such agreements, they may not be enforceable.

This requirement is fairly common in franchising, as franchisors want to protect their confidential information and prevent key employees from leaving and joining a competitor. The confidentiality agreement aims to protect Better Blend's proprietary information, such as recipes, marketing strategies, and operational procedures. The non-compete agreement is designed to prevent the general manager or key employees from working for a competing business during and after their employment with the Better Blend franchise.

For a prospective Better Blend franchisee, this means they should be prepared to have their general manager and key employees sign these agreements if requested by Better Blend. Franchisees should also be aware of any applicable laws in their area that may affect the enforceability of these agreements. It would be prudent to review the standard form of Better Blend's confidentiality and non-compete agreement for general managers and key employees to understand the specific terms and conditions. Franchisees should consult with an attorney to ensure that the agreements comply with local laws and are enforceable.