Who are considered 'key employees' that a Chocolate Bash franchisee might be asked to have sign a non-compete agreement?

According to the 2024 Chocolate Bash Franchise Disclosure Document, franchisees may be required to have their general manager and other key employees sign a confidentiality and non-compete agreement at the request of Chocolate Bash Franchising, LLC. This agreement would be in Chocolate Bash's then-current form, unless prohibited by applicable law.

This requirement means that as a Chocolate Bash franchisee, you might need to ensure that your general manager and other employees deemed 'key' are willing to sign such an agreement. The FDD does not define 'key employees,' so it would be prudent to clarify with Chocolate Bash what positions they consider key and what the terms of the non-compete agreement entail.

Non-compete agreements are common in franchising to protect the franchisor's confidential information, trade secrets, and customer relationships. The enforceability of these agreements can vary by state law, so franchisees should be aware of the specific regulations in their area. It is important to note that the franchisee is responsible for ensuring these employees comply with the non-compete agreement.