Is a Cilantro Taco Grill franchisee required to obtain non-compete agreements from their General Manager?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
tes must maintain the industry certifications related to the offer and sale of alcohol beverages Franchisor designates at its expense;
- 12.1.6 Employ only qualified individuals who are trained in accordance with Franchisor's standards, including but not limited to the protection of Franchisor's confidential and proprietary information, and who will at all times enhance Franchisor's brand and conduct themselves in a competent and courteous manner in accordance with this Agreement and the image and reputation of the System. Franchisee shall use its best efforts to ensure that Franchisee's employees maintain a neat and clean appearance, in accordance with the dress code outlined in the Manual, and render competent and courteous service to patrons of the Franchised Business. Franchisee acknowledges and agrees that poorly trained employees, sloppy or unclean appearances and incompetent or discourteous service are extremely damaging to the goodwill of the System and the Marks and are a material default of this Agreement;
- 12.1.7 Permit Franchisor or its agents, to inspect the Franchised Business location and any services, products or equipment, to determine whether they meet Franchisor's then-current standards, specifications and requirements. In addition to any other remedies Franchisor may have, Franchisee shall reimburse Franchisor for Franchisor's inspection costs of any item that does not conform to the System standards and specifications;
- 12.1.8 Prominently display signs in and upon the Franchised Business location using the Marks and/or other advertising and/or signs of such nature, form, color, number, location and size, and containing such material, as Franchisor may from time to time reasonably direct or approve in writing; and to not display in or upon the Franchised Business location or elsewhere any sign or advertising media or interior décor of any kind to which Franchisor
reasonably objects, including signs, advertising media or interior décor which are outdated. Upon giving Franchisee notice of its objection to same or upon termination hereof, Franchisor may at any time enter upon the Franchised Business location or elsewhere and remove any objectionable or non-approved signs, advertising media or interior décor and keep or destroy same without paying therefor or without being deemed guilty of trespass or any other tort;
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Cilantro Taco Grill franchisees are required to ensure their employees protect the franchisor's confidential information. Specifically, franchisees must train their employees on the restrictions, terms, and conditions related to the use of Cilantro Taco Grill's intellectual, proprietary, and confidential information. Franchisees must also ensure their employees comply with these restrictions.
While the FDD excerpt does not explicitly state that franchisees must obtain non-compete agreements from their general manager, it does emphasize the importance of protecting confidential information. The franchisee and their principals must treat the operations manual, written directives, and other materials as confidential and maintain this information as a trade secret. They are prohibited from divulging these materials to anyone other than employees who need the information to operate the franchised business.
Given the emphasis on protecting confidential information, a prospective Cilantro Taco Grill franchisee should clarify with the franchisor whether a non-compete agreement is required for the general manager or other key employees. This will help ensure full compliance with the franchise agreement and protect the franchisor's interests. It is common practice in franchising to have non-compete agreements with key personnel to safeguard trade secrets and prevent unfair competition.