What agreement must a designated manager sign regarding trade secrets for a Bevaris Alliance franchise?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, if a franchisee is granted the option to appoint a designated manager, that manager must sign a written agreement. This agreement is to ensure the designated manager maintains the confidentiality of the trade secrets, as detailed in Item 14 of the FDD. Additionally, the designated manager must agree to adhere to the covenants not to compete, which are described in Item 17 of the FDD.

This requirement protects Bevaris Alliance's proprietary information and competitive position. By having the designated manager sign a confidentiality agreement, Bevaris Alliance aims to prevent the unauthorized disclosure or use of its trade secrets, which could harm the franchise system. The non-compete covenants further ensure that the designated manager does not use their knowledge gained while managing the Bevaris Alliance business to compete with the franchise after their employment ends.

For a prospective Bevaris Alliance franchisee, this means that if they plan to hire a designated manager, they must ensure that the manager is willing to sign the required agreements. This is a standard practice in franchising, as franchisors typically take measures to protect their trade secrets and prevent unfair competition. Franchisees should carefully review Items 14 and 17 of the FDD to fully understand the scope of the trade secrets and non-compete obligations that the designated manager will be subject to.