Does the Confidentiality and Non-Compete Agreement for Burros Fries depend on the execution of any other agreements?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
trolled by or under common control with Franchisee. The initial Franchisee's Principals shall be listed on Schedule 7 of this Agreement.
C. Franchisee Will Not Compete Against Franchisor
Franchisee specifically acknowledges that, pursuant to this Agreement, Franchisee will receive valuable specialized training, our Confidential Information and our System.
Franchisee agrees that, except as otherwise approved in writing by us, Franchisee shall not, during the term of this Agreement and for a period of two (2) years from the date of (i) a transfer permitted under this Agreement; (ii) the expiration or termination of this Agreement (regardless of the cause for termination); or (iii) a final order of a duly authorized arbitrator, panel of arbitrators, or a court of competent jurisdiction (after all appeals have been taken) with respect to any of the foregoing or with respect to the enforcement of this Section 19.C, either directly or indirectly for itself, or through, on behalf of, or in conjunction with, any person, persons, or legal entity, own, maintain, operate, engage in, be employed by, or have any interest in any business using any aspect of the System, the overall Burros & Fries business concept, with similar Products and/or Services within a ten (10) mile radius of the Accepted Location designated hereunder, or within a ten (10) mile radius of any other System franchise or company-owned business in existence or planned as of the time of termination or expiration of this Agreement as identified in the Franchise Disclosure Document in effect as of the date of expiration or termination of this Agreement.
The unenforceability of all or part of this covenant not to compete in any jurisdiction will not affect the enforceability of this covenant not to compete in any other jurisdictions, or the enforceability of the remainder of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the Franchisee acknowledges that they will receive valuable specialized training, confidential information, and the Burros Fries system as part of the Franchise Agreement.
The Franchisee agrees to a non-compete clause, which means they cannot engage in any business using any aspect of the Burros Fries system or concept with similar products or services within a ten (10) mile radius of the Accepted Location or any other Burros Fries franchise or company-owned business. This restriction applies during the term of the Franchise Agreement and for two (2) years after a transfer, expiration, termination, or final order from an arbitrator or court.
The confidentiality agreement states that the Franchisee must keep methods of operations and Operations Manuals confidential and only disclose them to employees, agents, and representatives who need access to operate the business. Franchisee must follow all security procedures, including the execution and delivery to Burros Fries of confidentiality agreements by their employees, agents, and representatives.