Can Better Blend require managers and key employees to sign confidentiality agreements?

According to the 2024 Better Blend FDD, Better Blend can require franchisees to have their general manager/on-site supervisor and other key employees sign confidentiality and non-compete agreements if Better Blend requests it. These agreements must comply with applicable state laws and cannot prohibit an employee from working at another Better Blend location.

Better Blend also emphasizes the importance of protecting their confidential information. Franchisees, along with their owners, must safeguard the confidentiality of the Brand Standards Manual and other proprietary information, using it solely for the franchised business. Franchisees must also disclose any ideas, plans, recipes, improvements, concepts, methods, and techniques related to the Better Blend business that they develop, which will then be owned by Better Blend and potentially incorporated into the system for use by all franchisees without compensation to the original franchisee.

The Franchise Agreement also stipulates that franchisees must ensure their employees only access confidential information to the extent necessary for business operations and that they diligently protect this information both during and after the franchise term. This obligation extends to reporting any unauthorized disclosure or use of confidential information. The agreement also specifies that all customer data and point-of-sale data, excluding employee data, is considered Better Blend's confidential information.

These measures ensure that Better Blend maintains control over its proprietary information and trade secrets, which is a common practice in franchising to protect the brand's competitive advantage. Prospective franchisees should carefully review the specific terms of the confidentiality and non-compete agreements to understand their obligations and ensure compliance with local laws.