Is a Chocolate Bash franchisee required to have their key employees sign a confidentiality and non-compete agreement?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.4 General Manager and Key Employees. If requested by CB Franchising, Franchisee will cause its general manager and other key employees to sign CB Franchising's then-current form of confidentiality and non-compete agreement (unless prohibited by applicable law).
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, whether a franchisee is required to have their general manager and key employees sign a confidentiality and non-compete agreement depends on whether Chocolate Bash requests it. If requested by Chocolate Bash, the franchisee must ensure that their general manager and other key employees sign Chocolate Bash's then-current form of confidentiality and non-compete agreement, unless prohibited by applicable law.
This means that as a Chocolate Bash franchisee, you might need to get these agreements signed by your key staff. The specifics of the agreement they would need to sign are determined by Chocolate Bash at that time. The clause also acknowledges that in some jurisdictions, such agreements may not be legally enforceable.
It is important for a prospective Chocolate Bash franchisee to understand the current form of confidentiality and non-compete agreement that key employees would be required to sign. A prospective franchisee should also be aware of any applicable laws that might prohibit such agreements in their area.