For Big Frog Custom T Shirts More, where is the Confidentiality Agreement located?
Big_Frog_Custom_T_Shirts_More Franchise · 2024 FDDAnswer from 2024 FDD Document
ATTACHMENT 7-1
PERSONAL GUARANTY
As an inducement for Big Frog Custom T-Shirts, Inc. ("Franchisor") to execute that certain Franchise Agreement (the "Franchisor Agreement") between Franchisor and , a(n) and's principals and (collectively "Franchisee") the undersigned ("Guarantor"), hereby unconditionally guarantees to Franchisor and its successors and assigns that all of Franchisee's monetary and non-monetary obligations under the Franchise Agreement will be punctually paid and performed. Guarantor acknowledges that Guarantor has read the terms and conditions of the Franchise Agreement and acknowledges that the execution of this Guaranty and the obligations of Guarantor herein are in partial consideration for, and a condition to the granting of, the rights granted in the Franchise Agreement, and that Franchisor would not have granted these rights without the execution of this Guaranty by Guarantor.
Guarantor hereby individually makes, agrees to be bound by, and agrees to perform, all of the covenants, representations, warranties and agreements of Franchisee as set forth in the Franchise Agreement, including but not limited to, the covenants set forth in Sections 19.2, 19.5, 19.6, 19.8 and 19.9 of the Franchise Agreement. In particular, Guarantor promises that Guarantor will not, during the Term of the Franchise Agreement, as may be extended, or thereafter, communicate, divulge or use for the benefit of any other person, partnership, association, limited liability company or corporation any Confidential Information, as that term is defined in the Franchise Agreement, which includes without limitation, any information relating to the Big Frog Operations Manual and other materials used in or related to the System, the methods of operation of the System, vendor information and financial data.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 30–31)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, the Confidentiality Agreement for Big Frog Custom T-Shirts More is referenced within the Personal Guaranty under Attachment 7-1. Specifically, the guarantor agrees not to disclose or use any Confidential Information, as defined in the Franchise Agreement, including information from the Big Frog Operations Manual, methods of operation, vendor information, and financial data, during and after the term of the Franchise Agreement.
This means that as a prospective franchisee, you, and any guarantor (potentially a spouse or business partner), must maintain the confidentiality of Big Frog Custom T-Shirts More's proprietary information. This obligation extends both during the term of the franchise agreement and even after it ends. The agreement aims to protect Big Frog Custom T-Shirts More's competitive advantage by preventing franchisees from sharing sensitive business information with competitors or using it to start a competing business.
The Personal Guaranty included in Attachment 7-1 highlights the importance Big Frog Custom T-Shirts More places on protecting its confidential information. The guarantor's agreement to uphold the confidentiality terms is a condition for granting the franchise rights. This is a fairly standard practice in franchising, as franchisors need to safeguard their trade secrets and operational methods. Franchisees should carefully review the definition of "Confidential Information" in the Franchise Agreement to fully understand the scope of their confidentiality obligations.
Prospective franchisees should pay close attention to the sections of the Franchise Agreement referenced in the Personal Guaranty, including Sections 19.2, 19.5, 19.6, 19.8, and 19.9, as these outline specific confidentiality obligations. Understanding these terms is crucial to avoiding potential breaches of contract and legal repercussions. Franchisees should also be aware that the confidentiality obligations extend beyond the franchisee themselves and apply to any guarantor who signs the Personal Guaranty.