Does the confidentiality obligation for a Buildingstars franchisee extend to ensuring that their employees also comply with maintaining confidentiality?

According to Buildingstars's 2025 Franchise Disclosure Document, franchisees have an obligation to ensure their employees also comply with confidentiality requirements. Specifically, the FDD states that franchisees must endeavor to ensure their employees comply with maintaining the absolute confidentiality of all trade secrets and proprietary rights both during and after the term of the Franchise Agreement.

This requirement means a Buildingstars franchisee must take proactive steps to educate and train their employees about the confidential nature of Buildingstars's trade secrets and proprietary information. This includes information regarding products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, customers, rates, fees, terms, and databases. Franchisees should implement internal policies and procedures to prevent unauthorized disclosure or use of such information by their employees.

For a prospective Buildingstars franchisee, this highlights the importance of establishing robust employee training and confidentiality protocols from the outset. Failure to adequately protect Buildingstars's confidential information could result in legal action from the franchisor and potential damage to the Buildingstars brand. Franchisees may want to consult with legal counsel to develop appropriate confidentiality agreements and policies for their employees.