Are spouses of stakeholders required to sign confidentiality agreements for a Buns On Fire franchise?
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.
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, spouses of stakeholders are required to sign confidentiality agreements. Specifically, franchisees must ensure that all stakeholders, their spouses, 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 franchisees must provide signed copies to the company upon request.
This requirement ensures that Buns On Fire's sensitive business information is protected from unauthorized use or disclosure. Confidential information includes methods, techniques, specifications, standards, policies, procedures, information, concepts and processes relating to knowledge of and experience in the development, operation, and franchising of the Franchise Business; marketing and promotional programs for the Franchise Business and customer information; recipes, cooking methods, and ingredient lists; methods of operation; knowledge of specifications for and knowledge of suppliers of certain materials, equipment and supplies for the Franchise Business; operating results and financial performance of the Franchise Business; the Operations Manual; and the terms of the Franchise Agreement.
For a prospective Buns On Fire franchisee, this means that not only will they be bound by confidentiality agreements, but they must also ensure that their stakeholders, their spouses, and relevant employees also adhere to these agreements. This adds an administrative burden to the franchisee, who is responsible for obtaining these signatures and providing them to Buns On Fire. Failure to comply with this requirement could result in a breach of the Franchise Agreement.
Requiring spouses to sign confidentiality agreements is not uncommon in franchising, particularly when the stakeholder's spouse may have access to sensitive business information. This practice aims to prevent unintentional disclosure of confidential information that could harm the franchise system. Franchisees should carefully review the terms of the Confidentiality, Non-Competition, and Non-Solicitation Agreements to understand the full scope of their obligations and those of their stakeholders, spouses, and employees.