For how long after termination of employment must a General Manager adhere to the confidentiality and non-compete agreements with Burros Fries?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Neither Franchisee nor any of its Owners if you are an Entity, officers, directors, agents, employees or independent contractors, except as required in the performance of the duties contemplated by this Agreement, may disclose or use at any time, whether during the term of this Agreement or thereafter, any confidential and proprietary information disclosed to or known by Franchisee or any such person as a result of this Agreement.
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.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 44–45)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the confidentiality and non-compete obligations extend beyond the termination of the Franchise Agreement. Specifically, the franchisee and their employees, including the General Manager, must maintain the confidentiality of proprietary information both during the term of the agreement and after its termination or expiration. This obligation continues indefinitely, as there is no stated time limit for maintaining confidentiality.
Regarding non-competition, the franchisee is restricted from engaging in any similar business within a specified radius for a period of two years after the termination, transfer, or expiration of the agreement. However, the FDD does not explicitly state whether these non-compete terms apply directly to the General Manager after their termination of employment, or if they only apply to the franchisee.
Therefore, while the franchisee is bound by both confidentiality indefinitely and non-competition agreements for two years, the FDD does not specify the duration of these obligations for a General Manager after their employment ends. A prospective franchisee should seek clarification from Burros Fries regarding the specific terms and duration of the non-compete and confidentiality agreements applicable to the General Manager following their termination of employment to fully understand the implications.