Can Buona request copies of signed non-disclosure and/or non-competition agreements from the developer's owners, managers, or employees?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that the Confidential Information belongs to us and our affiliate, is proprietary information, and may contain trade secrets belonging to us and our affiliate and is disclosed to you or authorized for your use solely on the condition that you agree, and you therefore do agree herein, that you: (1) will not use the Confidential Information during and after the term of this Agreement in any other business or capacity; (2) will maintain the absolute confidentiality of the Confidential Information during and after the term of this Agreement; (3) will not make unauthorized copies of any portion of the Confidential Information disclosed in written form; and (4) will adopt and implement all reasonable procedures we may prescribe from time to time to prevent unauthorized use or disclosure of the Confidential Information, including restrictions on disclosure to your employees and the use of non-disclosure and/or non-competition agreements we may prescribe for your employees who have access to the Confidential Information.
Upon our request, you must provide us with copies of signed non-disclosure and/or noncompetition agreements signed by any Owners, managers or employees.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona can request copies of signed non-disclosure and/or non-competition agreements from the developer's owners, managers, or employees. This is related to the confidential information that Buona shares with the developer.
The FDD states that the developer must adopt and implement all reasonable procedures Buona may prescribe to prevent unauthorized use or disclosure of confidential information. These procedures include restrictions on disclosure to the developer's employees and the use of non-disclosure and/or non-competition agreements that Buona may prescribe for the developer's employees who have access to the confidential information.
Buona's ability to request these agreements ensures that the brand can enforce confidentiality and non-competition obligations not only on the franchisee (developer) but also on those working for the franchisee who have access to sensitive business information. This is a fairly standard practice in franchising, as franchisors need to protect their trade secrets and operational methods.