Under what condition must a Body20 franchisee obtain confidentiality agreements from officers, directors, and employees?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not, nor may you permit any person or Entity to, use or disclose any Proprietary Information (including any portion of the Manuals) to any other person, except to the extent necessary for your employees to perform their functions in the operation of your Studio. You must take reasonable precautions necessary to protect Proprietary Information from unauthorized use or disclosure, including conducting orientation and training programs for your employees to inform them of your obligation to protect Proprietary Information and their related responsibilities and obligations. If we or our affiliates so request, you must obtain from your officers, directors, Owners, Designated Managers, and employees confidentiality agreements in a form satisfactory to us or our affiliates. You will be responsible for any unauthorized disclosure of Proprietary Information by any person to whom you have disclosed Proprietary Information.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 54–55)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee must obtain confidentiality agreements from their officers, directors, owners, designated managers, and employees if Body20 or its affiliates request it. These agreements must be in a form satisfactory to Body20 or its affiliates. The agreements protect Body20's proprietary information.
The confidentiality agreements specifically identify Body20 as having the independent right to enforce them. This means Body20 can directly take action against an officer, director, or employee who violates the agreement, even though the franchisee is their direct employer.
This requirement ensures that Body20 can protect its confidential business information and trade secrets. The franchisee is responsible for any unauthorized disclosure of proprietary information by anyone to whom they have disclosed it. This includes conducting training programs for employees to inform them of their obligations to protect this information.