Is a Buns On Fire franchisee's spouse required to execute a confidentiality and non-competition agreement relating to the franchise?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
As a Franchisee, you will be required to sign personal guarantees relating to the payment of fees payable to us (the "Personal Guaranty"). The Personal Guaranty is attached to the Franchise Agreement (which is attached to this Franchise Disclosure Document as Exhibit D).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 39–40)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not explicitly stated whether a Buns On Fire franchisee's spouse is required to sign a confidentiality and non-competition agreement. However, the document does state that as a franchisee, you will be required to sign personal guarantees relating to the payment of fees payable to Buns On Fire. This is referred to as the "Personal Guaranty" and is attached to the Franchise Agreement.
Because the FDD does not specify whether a spouse must sign a confidentiality or non-compete agreement, prospective franchisees should clarify this requirement directly with Buns On Fire. Understanding the full extent of any required agreements is crucial before entering into a franchise agreement.
It is common practice in franchising to have key individuals involved in the business, such as a spouse or business partner, sign agreements to protect the franchisor's confidential information and prevent unfair competition. Therefore, it would be prudent for a potential Buns On Fire franchisee to confirm whether this applies to their situation.