What is the purpose of identifying key employees in the Cinch I.T. franchise agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
ariations from standard specifications and practices granted to other franchisees shall not under any circumstances be cause to require Us to grant to You a like or similar variation hereunder, either now or in the future.
12. KEY EMPLOYEES
A "Key Employee" as used in this Agreement is anyone who is an owner, partner, member and/or employee who acts in a management, or supervisory capacity for or on behalf of the Franchised Business; and anyone who functions in a sales or technician capacity. You shall identify all of Your Key Employees in Addendum B of this Agreement. Each individual listed in Addendum B
as a Key Employee no matter when so listed, shall thereafter be jointly and severally responsible for operating the Franchised Business in accordance with Our System Standards and this Agreement. You represent and warrant that each of the individuals designated in Addendum B will at all times abide by the System Standards of Our System, this Agreement, and the Licensed Rights; that You will at all times assume personal responsibility for their continued compliance with those System Standards; and that You will promptly notify Us if any of them shall at any time during the Term of this Agreement divest themselves of ownership, partnership, membership, employment, or contractual obligations as the case may be, with You. You shall amend Addendum B and submit the amended Addendum to Us whenever there is any change in Your list of Key Employees. We reserve the right to require certain individuals to be included in Your list of Key Employees.
We possess certain proprietary Confidential Information consisting of the Marks, the Intellectual Property, Our System Standards, and other methods, techniques, formats, specifications, procedures, information, systems, methods of business management, sales and promotion techniques and knowledge of and experience in the operation and franchising of CINCH I.T. franchised businesses (the "Confidential Information"). Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the employee lives or works, every Key Employee must sign a non-disclosure, non-solicitation and non-competition agreement in a form approved by Us or as We otherwise provide.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, identifying key employees is crucial for ensuring the franchise operates according to Cinch I.T.'s standards and for protecting the company's confidential information. A "Key Employee" is defined as anyone who is an owner, partner, member, and/or employee who acts in a management, or supervisory capacity for or on behalf of the Franchised Business; and anyone who functions in a sales or technician capacity. These individuals are listed in Addendum B of the franchise agreement. By designating key employees, Cinch I.T. holds these individuals jointly and severally responsible for adhering to the System Standards outlined in the agreement.
Cinch I.T. requires that each key employee signs a non-disclosure, non-solicitation, and non-competition agreement, unless prohibited by state law. This agreement aims to protect Cinch I.T.'s proprietary Confidential Information, including the Marks, Intellectual Property, System Standards, methods, techniques, formats, specifications, procedures, information, systems, methods of business management, sales and promotion techniques and knowledge of and experience in the operation and franchising of CINCH I.T. franchised businesses. The franchisee must provide Cinch I.T. with a copy of each key employee's signed agreement before they begin employment, provide services, participate in the Initial Training Program, or receive Confidential Information.
The franchisee is responsible for ensuring that key employees comply with Cinch I.T.'s System Standards and must notify Cinch I.T. if any key employee leaves their position. The franchisee must also update Addendum B to reflect any changes in the list of key employees and submit the amended addendum to Cinch I.T. Cinch I.T. retains the right to require certain individuals to be included in the franchisee's list of key employees. This process helps Cinch I.T. maintain control over its system, protect its confidential information, and ensure consistent operation across all franchise locations.