Under what condition will a Chocolate Bash franchisee cause its general manager to sign a confidentiality and non-compete agreement?

According to Chocolate Bash's 2024 Franchise Disclosure Document, a franchisee is required to have their general manager and other key employees sign Chocolate Bash's confidentiality and non-compete agreement if requested by Chocolate Bash Franchising, LLC. This requirement is contingent upon the franchisor's request and is subject to applicable laws that may prohibit such agreements.

This provision allows Chocolate Bash to protect its confidential information and prevent competition from individuals who have gained knowledge of the Chocolate Bash system through their employment. By requiring these agreements, Chocolate Bash aims to maintain the integrity of its business model and protect its market position.

For a prospective franchisee, this means that they should be prepared to ensure their general manager and key employees are willing to sign these agreements as a condition of their employment, if requested by Chocolate Bash. Franchisees should also be aware of any local or state laws that may impact the enforceability of these agreements.