Can Buildingstars regulate the form of agreement that franchisees use with their employees regarding confidentiality?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE will exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all trade secrets and proprietary rights during and after the term of this Agreement and will endeavor to insure that its employees will also comply.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 28)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars franchisees are responsible for ensuring their employees comply with confidentiality requirements. While the FDD states that franchisees must endeavor to ensure their employees comply with confidentiality, it does not explicitly state that Buildingstars regulates the form of agreement franchisees use with their employees regarding confidentiality.
Buildingstars franchisees must exercise diligence to maintain the confidentiality of trade secrets and proprietary rights, and they must ensure their employees also comply. This suggests that franchisees have some autonomy in how they achieve this compliance, potentially including the form of agreements used with employees. However, Buildingstars could provide guidelines or templates in the Confidential Operations Manual.
Prospective franchisees should clarify with Buildingstars the extent to which they can regulate or influence the form of employee agreements related to confidentiality. Understanding this will help franchisees ensure they meet Buildingstars' expectations and protect confidential information effectively.