Does Cd One Price Cleaners require employees to sign confidentiality agreements?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
At our option, you also must require your employees and others who may have access to confidential information to sign confidentiality agreements. We will have the right to enforce those agreements.
Franchisee shall ensure that anyone associated with Franchisee shall keep confidential all confidential information received about Franchisor and the Store.
At Franchisor's request, Franchisee shall
require anyone who may have access to confidential information to execute confidentiality covenants in a form approved by Franchisor, including, without limitation, specific identification of Franchisor as a third party beneficiary of such covenants with the independent right to enforce them.
At Franchisor's option, Franchisor may post the Manual on Franchisor's restricted extranet website to which Franchisee and certain employees of Franchisee designated by Franchisor will have access. If Franchisor does so, Franchisee and such employees must sign the agreement(s) that Franchisor periodically specifies pertaining to the use of such website and must monitor the website for any updates to the Manual. Any passwords or other digital identifications necessary to access the Manual on such a website are part of confidential information and must be used and protected accordingly.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 55–56)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, franchisees are not always required to have employees sign confidentiality agreements, but it may be requested by the franchisor. Cd One Price Cleaners may require franchisees to ensure that anyone associated with them keeps confidential all information received about Cd One Price Cleaners and the store.
At Cd One Price Cleaners' request, franchisees must require anyone who may have access to confidential information to sign confidentiality covenants in a form approved by Cd One Price Cleaners. These covenants must specifically identify Cd One Price Cleaners as a third-party beneficiary with the independent right to enforce them. This means Cd One Price Cleaners can directly pursue legal action against an employee who breaches the confidentiality agreement, even though the employee is technically employed by the franchisee.
Cd One Price Cleaners may post their operating manual on a restricted extranet website. If they do so, franchisees and certain designated employees must sign agreements pertaining to the use of the website and monitor it for updates to the manual. Any passwords or digital identifications needed to access the manual are considered confidential information and must be protected accordingly. This highlights the importance of maintaining data security and limiting access to sensitive information within the franchise operation.