Does the Confidentiality and Non-Compete Agreement for Burros Fries require both the franchisor and franchisee to sign?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISE AGREEMENT
PARTIES
THIS FRANCHISE AGREEMENT ("Agreement") is made by and between Burros & Fries Franchise, Inc, a California corporation, hereinafter sometimes referred to as "Burros & Fries" or "Franchisor" and that party or parties described as the Franchisee in this Agreement and on the signature line, hereinafter known as "you" or "Franchisee." If the Franchisee is a corporation or limited liability company, partnership or other entity, certain provisions of this Agreement also apply to your shareholders, members, partners or owners. Any such entity may be referred to as an "Entity" and those who own the Entity may be referred to as "Owners." For ease of reference, Burros & Fries, Inc., will also be referred to as "we," "us
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
Based on the 2024 Burros Fries Franchise Disclosure Document, the excerpts provided discuss confidentiality and non-compete obligations, but do not explicitly state that both the franchisor and franchisee must sign a specific Confidentiality and Non-Compete Agreement. The FDD does outline the franchisee's responsibilities to maintain confidentiality of proprietary information and to not compete with Burros Fries during and after the franchise term. It also includes a Franchise Agreement that is made by and between Burros & Fries Franchise, Inc and the Franchisee. There is also mention of an Individual Guaranty that the franchisee must sign. However, the excerpts do not specify a separate, standalone agreement requiring signatures from both parties to ensure confidentiality and non-competition.
Given the absence of a clear statement about a jointly signed agreement, it is important for a prospective Burros Fries franchisee to clarify the exact documentation and signature requirements related to confidentiality and non-compete obligations. Understanding whether a separate agreement exists and who is required to sign it is crucial for assessing the legal responsibilities and liabilities associated with the franchise.
To gain a comprehensive understanding, a potential franchisee should ask Burros Fries for a copy of all agreements related to confidentiality and non-competition, and specifically inquire whether the franchisor also signs these agreements. This will help in making an informed decision about investing in a Burros Fries franchise.