Under what condition must a Chocolate Bash franchisee have their general manager 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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 29–30)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, a franchisee is required to have their general manager and other key employees sign the franchisor's current confidentiality and non-compete agreement if Chocolate Bash Franchising requests it. This requirement is contingent on the franchisor's request and is subject to applicable laws that may prohibit such agreements.
This means that as a Chocolate Bash franchisee, you might need to ensure your general manager and key employees are willing to sign these agreements as a condition of their employment. The specific terms of the confidentiality and non-compete agreement would be those in effect at the time of the request.
It is important to note that the enforceability of non-compete agreements can vary by jurisdiction. The FDD mentions that in California, such covenants extending beyond the term of the agreement may not be enforceable. Therefore, franchisees should consult with legal counsel to understand the specific requirements and enforceability of these agreements in their location.