Does the Chop5 Salad Kitchen Franchise Owner Agreement apply to the spouse of each owner of the Franchisee?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
This Franchise Owner Agreement (this "Agreement") is entered into by: (a) each of the undersigned owners of Franchisee (defined below); and (b) the spouse of each such owner, in favor of CHOP5 Franchise LLC, a Kentucky limited liability company, and its successors and assigns ("us"), upon the terms and conditions set forth in this Agreement. Each signatory to this Agreement is referred to as "you".
2. Background. In your capacity as an owner (or the spouse of an owner) of Franchisee, you may gain knowledge of our System and Know-how. You understand that protecting the Intellectual Property is vital to our success and that of our franchisees and that you could seriously jeopardize our franchise system if you were to unfairly compete with us or misuse our Intellectual Property. In addition, you understand that certain terms of the Franchise Agreement apply to "owners" and not just Franchisee. You agree to comply with this Agreement to: (a) avoid damaging our System by engaging in unfair competition; and (b) bind yourself to the terms of the Franchise Agreement applicable to owners.
- (a) Intellectual Property and Confidential Information. You agree to:
- (i) refrain from using the Intellectual Property or Confidential Information in any capacity or for any purpose other than the operation of Franchisee's Restaurant in compliance with the Franchise Agreement and Manual;
- (ii) maintain the confidentiality of Confidential Information at all times;
- (iii) refrain from making unauthorized copies of documents containing Confidential Information;
- (iv) take all steps we reasonably require to prevent unauthorized use or disclosure of Confidential Information; and
- (v) immediately stop using the Intellectual Property and Confidential Information at such time that you are (or your spouse is) no longer an owner of Franchisee.
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, the Franchise Owner Agreement applies to the spouse of each owner of the franchisee. The agreement is entered into by each of the undersigned owners of the franchisee and the spouse of each owner, in favor of CHOP5 Franchise LLC. Each person who signs the agreement is referred to as "you."
By signing the Franchise Owner Agreement, the spouse of the owner may gain knowledge of the Chop5 Salad Kitchen system and know-how. The spouse agrees to comply with the agreement to avoid damaging the Chop5 Salad Kitchen system by engaging in unfair competition and to be bound to the terms of the Franchise Agreement applicable to owners.
The Franchise Owner Agreement includes brand protection covenants related to intellectual property and confidential information. The spouse must agree to refrain from using the intellectual property or confidential information in any capacity other than the operation of the franchisee's restaurant in compliance with the Franchise Agreement and manual. The spouse must also maintain the confidentiality of confidential information at all times and stop using the intellectual property and confidential information when they are no longer an owner of the franchisee.