Is the Confidentiality and Non-Compete Agreement for Burros Fries dependent on any other agreements?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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. This covenant not to compete is given in part in specific consideration for access to trade secrets provided as a part of our training or ongoing support programs. In any jurisdiction in which the covenant contained in this Section 19 or any part of it is deemed not enforceable in whole or in part, Franchisee hereby grants us an option to purchase Franchisee's Business on expiration or termination of this Agreement. In such case, we may exercise this option by giving thirty (30) days' written
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the Franchisee acknowledges that they will receive specialized training, confidential information, and the Burros Fries system as part of the Franchise Agreement. The Franchisee agrees not to engage in any business using any aspect of the Burros Fries system or the overall Burros Fries business concept with similar products and/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 agreement and for two years after a permitted transfer, expiration, termination, or a final order from an arbitrator or court. This agreement is given in consideration for access to trade secrets provided during training and support programs.
The Franchisee must also maintain the confidentiality of proprietary information disclosed to them, including strategies for site acquisition, distinctive products, specific food preparation techniques, inventory management systems, and marketing materials. This obligation extends both during and after the term of the Franchise Agreement. The Franchisee acknowledges that this confidential information was previously unknown to them and is particular to the food service industry conducted by their Burros Fries business.
Upon termination or expiration of the Franchise Agreement, the Franchisee must immediately cease using any confidential information, methods, trade secrets, procedures, or descriptions of products and services associated with Burros Fries. They must also stop using any names and marks, proprietary marks, and distinctive forms associated with the Burros Fries system. The franchisee is obligated to make changes to signage and vehicles to distinguish the surviving business entity from its former appearance as a Burros Fries business. The franchisee must comply with the covenant not to compete and maintain the confidentiality of proprietary information, as well as return all confidential information to Burros Fries.