Are Black Bear Diner franchisee managers 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)
The 2025 Black Bear Diner Franchise Disclosure Document does not explicitly state that franchisee managers are required to sign non-disclosure agreements. However, the document does state that as a franchisee, you will receive valuable training and confidential information.
The FDD states that franchisees and personal guarantors agree not to engage in any competitive business during the term of the agreement, or for two years after termination or expiration, within a 25-mile radius of the approved location or any other Black Bear Diner restaurant. This suggests that protecting confidential information is a priority for Black Bear Diner.
While the FDD does not directly address non-disclosure agreements for franchisee managers, it is common practice in the franchise industry to have employees with access to sensitive information sign such agreements. A prospective franchisee should clarify with Black Bear Diner whether managers are required to sign non-disclosure agreements to protect the brand's confidential information and trade secrets.