Under what circumstances does Bombs Away require a general manager to sign a confidentiality and non-compete agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.3 General Manager and Key Employees. If requested by Bombs Away Franchising, Franchisee will cause its general manager and other key employees to sign Bombs Away Franchising's then-current form of confidentiality and non-compete agreement (unless prohibited by applicable law).
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 26–27)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising may request that a franchisee ensure their general manager and other key employees sign a confidentiality and non-compete agreement. This requirement is contingent on Bombs Away Franchising's request and is subject to applicable laws that may prohibit such agreements.
This means that as a Bombs Away franchisee, you might be required to have your general manager and other key personnel agree to protect Bombs Away's confidential information and not compete with the franchise, using Bombs Away Franchising's standard form. The enforceability of these agreements can vary by jurisdiction, so franchisees need to be aware of local laws.
It is important to note that the specific terms of the confidentiality and non-compete agreement that the general manager and key employees would be required to sign are not detailed in this section. Prospective franchisees should review a sample of the agreement and consult with legal counsel to understand the full scope of these obligations and their enforceability in their specific location.