Can Buns On Fire require franchisees to obtain confidentiality and non-competition agreements from certain employees?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
You must acknowledge and agree that the Confidential Information is confidential to and a valuable asset of us and our affiliates, is proprietary, includes trade secrets of us and our affiliates and is disclosed to you on the condition that you agree that during and after the term of the applicable agreement you: (1) will not use the Confidential Information in any other business or capacity; (2) will maintain the absolute confidentiality of the Confidential Information; (3) will not make unauthorized copies of any portion of the Confidential Information disclosed in written or other tangible form; (4) will adopt and implement all reasonable procedures we prescribe to prevent unauthorized use or disclosure of the Confidential Information; and (5) will require all Stakeholders, spouses of Stakeholders, and all employees who have access to the Confidential Information to sign Confidentiality, Non-Competition, and Non-Solicitation Agreements in the form we approve and provide us, at our request, with signed copies of each agreement. Nothing contained in the Franchise Agreement will be construed to prohibit you from using the Confidential Information in connection with the operation of other Franchise Businesses according to a Franchise Agreement or other Agreements with us.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees are required to have their stakeholders and employees sign Confidentiality, Non-Competition, and Non-Solicitation Agreements. These agreements must be in a form that Buns On Fire approves. Franchisees must also provide Buns On Fire with signed copies of these agreements upon request.
This requirement ensures that Buns On Fire's confidential information and trade secrets are protected. The confidential information includes details about the franchise's operation, marketing programs, recipes, methods of operation, supplier information, operating results, the Operations Manual, and the terms of the Franchise Agreement. By mandating these agreements, Buns On Fire aims to prevent unauthorized use or disclosure of its proprietary information by anyone with access to it.
For a prospective Buns On Fire franchisee, this means they will need to incorporate these agreements into their hiring and operational procedures. They will need to ensure that all stakeholders, their spouses, and employees who have access to confidential information sign the required agreements. Furthermore, they must maintain copies of these signed agreements and provide them to Buns On Fire if requested. This is a standard practice in franchising to protect the franchisor's intellectual property and business methods.