Are Cicis franchisees required to bind their employees by written obligations of confidentiality before disclosing the Manuals?

According to Cicis's 2025 Franchise Disclosure Document, franchisees are required to ensure their employees are bound by written confidentiality obligations before disclosing the Manuals to them. The Manuals contain critical information for operating a Cicis restaurant, and Cicis considers them part of their Confidential Information. Franchisees must protect this information from improper use and disclosure.

This requirement means that a Cicis franchisee will need to have confidentiality agreements in place with their employees who have access to the Manuals. These agreements must legally bind the employees to maintain the confidentiality of the information contained within the Manuals. The franchisee is responsible for ensuring that these agreements are executed and that employees understand their obligations.

Cicis retains the right to approve the form and substance of these confidentiality agreements. This gives Cicis control over the specific terms and conditions of the agreements, ensuring they adequately protect Cicis's confidential information. Franchisees must use the approved form to comply with the franchise agreement.

This requirement is typical in franchising, as franchisors need to protect their trade secrets and operational methods. By requiring confidentiality agreements, Cicis aims to prevent the unauthorized dissemination of its proprietary information, which could harm the brand and its franchisees. The franchisee's obligation to secure these agreements underscores the importance Cicis places on maintaining the confidentiality of its Manuals and other confidential information.