Does Buns On Fire require stakeholders and employees to sign confidentiality agreements?
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 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 37–39)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees are required to ensure that their stakeholders and employees with access to confidential information sign confidentiality, non-competition, and non-solicitation agreements. These agreements must be in a form approved by Buns On Fire, and the franchisee must provide signed copies to Buns On Fire upon request. This requirement is in place to protect the confidential and proprietary information of Buns On Fire and its affiliates.
This means that as a Buns On Fire franchisee, you will need to implement procedures to manage and protect the confidential information provided to you by Buns On Fire. This includes ensuring that anyone with access to this information, such as business partners, investors, and employees, signs the required agreements. The agreements cover confidentiality, non-competition, and non-solicitation, meaning those who sign agree not to disclose confidential information, compete with Buns On Fire, or solicit its employees or customers, both during and after their association with your franchise.
The franchisee bears the responsibility of obtaining these signed agreements and providing them to Buns On Fire if requested. Failure to comply with this requirement could result in a breach of the Franchise Agreement. This is a fairly standard practice in franchising, as franchisors need to protect their trade secrets and operational methods.
Prospective franchisees should carefully review the form of the Confidentiality, Non-Competition, and Non-Solicitation Agreements provided by Buns On Fire to understand the specific obligations and restrictions they impose on stakeholders and employees. It would be prudent to consult with an attorney to fully understand the implications of these agreements.