Where can I find information about non-disclosure and non-competition agreements for a Cinch I.T. franchise?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
The provisions of this Section shall survive any termination or expiration of this Agreement or any renewals thereof.
27. NON-DISCLOSURE AND NON-COMPETITION AGREEMENTS
Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the employee works or lives, You shall cause any person who is actively involved as a Key Employee, as defined in Section 12 of this Agreement, in the Franchised Business, at the time such person enters Your employment, to enter into a non-disclosure, non-solicitation and noncompetition agreement, in a form approved by Us or as We otherwise provide. You acknowledge and agree that any form of non-disclosure, non-solicitation and non-competition agreement is a form of agreement only and that it may or may not be enforceable in a particular jurisdiction. You agree that You are solely responsible for obtaining Your own professional advice with respect to the legal compliance with the law and adequacy of the terms and provisions of any agreement You require Your employees, agents and independent contractors to sign.
You shall use Your best efforts to prevent any such persons from using, in connection with the operation of any competing business wherever located, any of the Licensed Rights or from operating any competing business that looks like, copies or imitates any CINCH I.T. Franchised Business or operates in a manner tending to have such effect. If You have reason to believe that any such person has violated the provisions of the non-disclosure, non-solicitation and noncompetition agreement, You shall immediately notify Us and shall cooperate with Us to protect Us against infringement or other unlawful use of the Licensed Rights, including, but not limited to, the prosecution of any lawsuits if, in the judgment of Our counsel, such action is necessary and advisable.
The provisions of this Section shall survive any termination or expiration of this Agreement or any renewals thereof.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, details regarding non-disclosure and non-competition agreements can be found in Section 27. This section emphasizes that franchisees must ensure that all key employees sign a non-disclosure, non-solicitation, and non-competition agreement. The specific form of this agreement needs to be approved by Cinch I.T. or provided by them. However, the document acknowledges that the enforceability of such agreements can vary by jurisdiction, and it is the franchisee's responsibility to seek professional legal advice to ensure compliance and adequacy of these agreements.
Cinch I.T. also requires franchisees to actively prevent key employees from using licensed rights or operating competing businesses that imitate a Cinch I.T. franchise. Franchisees are obligated to inform Cinch I.T. immediately if they suspect any violation of these agreements and must cooperate in protecting Cinch I.T.'s rights, including participating in lawsuits if necessary. This obligation extends beyond the termination or expiration of the franchise agreement.
Furthermore, the FDD includes exhibits that provide the actual forms of these agreements. Exhibit F contains the Non-Disclosure, Non-Solicitation, and Non-Competition Agreement used for employees. There is also Exhibit H, which is a Spousal Non-Disclosure and Non-Competition Agreement. These exhibits outline the specific terms and conditions that Cinch I.T. requires to protect its confidential information and system standards.