Is the Chocolate Bash franchisee obligated to enforce the non-compete agreement on their general manager?

According to the 2024 Chocolate Bash Franchise Disclosure Document, franchisees have a responsibility regarding non-compete agreements for their general managers and key employees. Specifically, if requested by Chocolate Bash, the franchisee must ensure that their general manager and other key employees sign Chocolate Bash's standard confidentiality and non-compete agreement. This obligation is contingent on Chocolate Bash's request and is subject to applicable laws that may prohibit such agreements.

This requirement means that a Chocolate Bash franchisee needs to be prepared to implement these agreements if asked by the franchisor. The franchisee should understand the terms of the non-compete agreement and ensure that it complies with local and state laws, as some jurisdictions may have restrictions on the enforceability of non-compete clauses. The franchisee should also be prepared to discuss the agreement with potential general managers and key employees during the hiring process.

It is important to note that the franchisee's obligation is triggered only if Chocolate Bash requests the implementation of these agreements. The franchisee is not proactively required to enforce a non-compete agreement unless specifically directed by Chocolate Bash. This provision allows Chocolate Bash to maintain a degree of control over key personnel within the franchise network, protecting its confidential information and business interests.

Prospective franchisees should clarify with Chocolate Bash the circumstances under which these non-compete agreements will be required and the specific terms of the agreement. Understanding these obligations is crucial for managing personnel and ensuring compliance with the franchise agreement.