Does Black Bear Diner require franchisees to maintain confidentiality agreements with certain individuals?

According to the 2025 Black Bear Diner Franchise Disclosure Document, Black Bear Diner retains the right to mandate that franchisees secure confidentiality agreements with specific individuals. These individuals may include the franchisee's shareholders, officers, directors, partners, employees, members, managers, and their spouses. These agreements would be based on a form approved by Black Bear Diner. This provision allows Black Bear Diner to maintain tight control over its confidential information and protect its business interests.

For a prospective franchisee, this means that if Black Bear Diner requires it, they must ensure that certain individuals associated with their franchise operation sign confidentiality agreements. This requirement aims to prevent the unauthorized disclosure of sensitive business information that could harm the Black Bear Diner system. The franchisee should factor in the administrative burden and potential legal costs associated with implementing and enforcing these agreements.

This practice is relatively common in franchising, particularly when the franchise system relies heavily on proprietary information and trade secrets. Franchisees should be prepared to comply with this requirement and understand the scope of the confidentiality agreements to ensure they do not inadvertently breach the terms of the franchise agreement. It is important for franchisees to review the specific form of agreement approved by Black Bear Diner to fully understand the obligations and restrictions it imposes on the relevant individuals.