What is the purpose of the Burneys Sweets More Nondisclosure and Non-Solicitation Agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Nondisclosure and Non-Solicitation Agreement ("Agreement") is made and entered into as of ("Effective Date") by and between DMG BURNEY INC., a |
|---|
| North Carolina corporation ("Franchisor") and ("Associate"). |
| All |
| initially capitalized terms not otherwise defined herein shall have the meanings set forth in the |
| Franchise Agreement. |
| RECITALS |
| A. |
| The Franchisor is engaged in the business of franchising a unique system for |
| operating limited-seating, fast-casual Shops emphasizing high-quality, glazed and stuffed |
| croissants, donuts, cakes, pies, cookies, other dessert items, coffee and other beverages |
| ("Franchised Business"). |
| The Franchised Businesses are operated under the Franchisor's |
| trademark "BURNEY'S SWEETS & MORE" and other service marks, trademarks, logo types, |
| architectural designs, trade dress and other commercial symbols (collectively, the "Marks"); |
| B. |
| The Franchisor has developed methods for establishing, operating and promoting |
| Franchised Businesses pursuant to the Franchisor's Confidential Information (defined below) and |
| such Confidential Information as may be further developed from time to time by the Franchisor |
| ("System"); |
| C. |
| The Franchisor and its affiliates have established substantial goodwill and an |
| excellent reputation with respect to the quality of products and customer service, which goodwill |
| and reputation have been and will continue to be of major benefit to the Franchisor; |
| D. |
| Associate desires to become involved with a ("Franchisee"), a |
| franchisee of the Franchisor that operates a Franchised Business in in the |
| capacity of an owner, officer, partner, director, or agent of the Franchised Business, or is a spouse |
| or domestic partner of an owner of a Franchised Business, and will become privileged as to certain |
| Confidential Information. Associate may or may not have signed the Franchise Agreement or |
| Guaranty and Assumption of Franchisee's Obligations form; and |
| E. |
| Associate and the Franchisor have reached an understanding with regard to |
| nondisclosure by Associate of Confidential Information and with respect to non-solicitation of |
| customers, vendors, and employees by Associate. Associate agrees to the terms of this Agreement |
| as partial consideration for the Franchisor's willingness to allow Associate to engage in a business |
| relationship with Franchisor or Franchisee using the Franchisor's Confidential Information. |
| NOW THEREFORE, in consideration of the foregoing, the mutual promises contained |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, the Nondisclosure and Non-Solicitation Agreement is designed to protect Burneys Sweets More's confidential information, brand reputation, and established business relationships. The agreement is made between DMG BURNEY INC. (the Franchisor) and an individual (the Associate) who is involved with a Burneys Sweets More franchisee. The Associate, by engaging in a business relationship with Burneys Sweets More or its franchisee and gaining access to confidential information, agrees to not disclose this information and to not solicit Burneys Sweets More's customers, vendors, or employees. This agreement serves as partial consideration for Burneys Sweets More allowing the Associate to use its confidential information.
The agreement acknowledges that Burneys Sweets More has developed a unique system for operating fast-casual shops that specialize in items such as glazed and stuffed croissants, donuts, cakes, pies, cookies, coffee, and other beverages. This system, along with the Burneys Sweets More trademarks and other commercial symbols, are crucial to the brand's identity and success. The agreement also recognizes the substantial goodwill and excellent reputation that Burneys Sweets More has established, which benefits the franchisor.
For a prospective Burneys Sweets More franchisee, this agreement means that anyone associated with their franchise (such as owners, officers, partners, directors, agents, or their spouses/domestic partners) must maintain the confidentiality of the brand's proprietary information and refrain from soliciting its customers, vendors, and employees. This is a standard practice in franchising to safeguard the franchisor's competitive advantage and protect the franchise system as a whole. The franchisee should ensure that all relevant parties understand and comply with the terms of this agreement to avoid potential legal issues and maintain a positive relationship with Burneys Sweets More.