What agreement must my employees sign before I disclose confidential Cinnaholic information to them?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchise Agreement or Development Agreement or disclose any confidential information to any third party or other persons identified by us as not having authorization to receive disclosure of confidential information. You may disclose confidential information contained in the Operations Manual only to your employees who have a business need to have access to the confidential information, but only if you first secure from them an agreement to maintain the confidentiality of the confidential information disclosed.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 39–40)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, before disclosing confidential information from the Operations Manual to employees, a franchisee must first secure an agreement from them to maintain the confidentiality of the disclosed information. This agreement is crucial for protecting Cinnaholic's trade secrets and proprietary information. The specific form of this agreement is prescribed by Cinnaholic and may include non-competition, non-solicitation, and/or non-disclosure clauses.
This requirement ensures that sensitive information, such as recipes, marketing strategies, and operational procedures, remains within authorized channels and is not leaked to competitors or used in ways that could harm the Cinnaholic brand. Franchisees must be diligent in obtaining these agreements from their employees to avoid potential legal repercussions. Cinnaholic retains the right to take legal action against a franchisee if there is unauthorized use of confidential information or trade secrets by the franchisee or their employees.
Furthermore, the franchisee is responsible for notifying Cinnaholic of any unauthorized use or disclosure of copyrighted materials or confidential information, including by their employees. This proactive approach helps Cinnaholic maintain control over its proprietary assets and address any breaches promptly. The franchisee's adherence to these confidentiality measures is essential for upholding the integrity and competitive advantage of the Cinnaholic franchise system.
In addition to employee agreements, the franchisee's spouse (and shareholders, members, partners, and managers if the franchisee is not an individual) must sign a Personal Covenants document attached to the Franchise Agreement and Development Agreement. These covenants require compliance with confidentiality provisions, abstaining from competitive businesses, and refraining from soliciting Cinnaholic employees or the employees of other Cinnaholic franchisees. These measures collectively aim to safeguard Cinnaholic's confidential information and maintain the stability of its franchise network.