Can Buns On Fire require franchisees to obtain confidentiality and non-competition agreements from their Operating Manager?
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 ensure that certain individuals sign Confidentiality, Non-Competition, and Non-Solicitation Agreements. Specifically, Buns On Fire requires that all stakeholders, spouses of stakeholders, and all employees who have access to the Confidential Information sign these agreements.
Buns On Fire specifies that these agreements must be in a form that Buns On Fire approves. Furthermore, franchisees must provide Buns On Fire with signed copies of each agreement upon request. This requirement ensures that Buns On Fire can enforce these agreements directly if necessary and maintain control over its confidential information.
While the FDD excerpt does not explicitly mention "Operating Manager", it does state that all employees who have access to confidential information must sign the agreements. Therefore, if the Operating Manager has access to Buns On Fire's confidential information, the franchisee would be required to obtain these agreements from them. This is a common practice in franchising to protect the franchisor's trade secrets and proprietary information.