Are Black Bear Diner franchisee employees required to sign nondisclosure agreements?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
edged to be Franchisor's property);
- (h) assign to Franchisor, at Franchisor's option, all telephone numbers (and associated listings) for the Franchised Restaurant; and
(i) comply with all other applicable provisions of this Agreement including the noncompete provisions.
17. FRANCHISEE'S COVENANTS NOT TO COMPETE
17.1 During Term
Franchisee specifically acknowledges that pursuant to this Agreement, Franchisee will receive valuable training and Confidential Information of Franchisor and the System. Accordingly, Franchisee and the Personal Guarantors will not, during the term of this Agreement, on their own account or as an employee, agent, consultant, affiliate, licensee, partner, officer, director, or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in, or assist any person or entity engaged in any Competitive Business, except with the prior written consent of the Franchisor.
17.2 After Termination
Franchisee and the Personal Guarantors covenant that, except as otherwise approved in writing by Franchisor, neither Franchisee nor the Personal Guarantors will not, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of for termination, either directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity own an interest in, manage, operate, act as a consultant with respect to the management or operation of any Competitive Business within a radius of twenty-five (25) miles of the Approved Location or within twenty-five (25) miles of any other Black Bear Diner restaurant.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Black Bear Diner franchise agreement includes confidentiality and non-compete covenants for the franchisee and their personal guarantors, but it does not explicitly state that the franchisee's employees are required to sign non-disclosure agreements. The franchisee acknowledges that they will receive valuable training and confidential information about the Black Bear Diner system.
The franchise agreement states that during the term of the agreement, the franchisee and personal guarantors cannot be involved with any competitive business. After the agreement expires or terminates, the franchisee and personal guarantors are restricted from owning, managing, or consulting with a competitive business within a 25-mile radius of the Black Bear Diner location for two years.
While the FDD does not specify non-disclosure agreements for employees, franchisees are obligated to protect the confidential information of the Black Bear Diner system. It is common practice in the franchise industry for franchisors to require franchisees to take measures to protect proprietary information, which may include having employees sign confidentiality agreements. A prospective franchisee should clarify with Black Bear Diner whether employee non-disclosure agreements are required or recommended to ensure compliance with the franchise agreement and protect the brand's confidential information.