What does the Cinnaholic noncompetition agreement for managers prohibit?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Managers are not already bound by the Franchise Agreement, we may require them to sign a noncompetition, non-solicitation and/or nondisclosure agreement in the form(s) prescribed by us. This noncompetition, non-solicitation and/or nondisclosure agreement will prohibit them from directly or indirectly engaging in activities that compete with the operations of your Bakery or any other CINNAHOLIC® Bakery, disclosing our confidential and proprietary information and trade secrets, and soliciting our employees and employees of other CINNAHOLIC® franchisees. We also may require those employees who have received our confidential and proprietary information to enter into the same noncompetition, non-solicitation and/or nondisclosure agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 41)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if a manager is not already bound by the Franchise Agreement, Cinnaholic may require them to sign a noncompetition, non-solicitation, and/or nondisclosure agreement. This agreement aims to protect Cinnaholic's business interests by preventing managers from engaging in activities that could harm the franchise.
Specifically, the agreement prohibits managers from directly or indirectly participating in activities that compete with the operations of the franchisee's Cinnaholic Bakery or any other Cinnaholic Bakery. It also restricts them from disclosing confidential and proprietary information and trade secrets that belong to Cinnaholic. Furthermore, the agreement prevents managers from soliciting Cinnaholic's employees or the employees of other Cinnaholic franchisees.
Cinnaholic may also require other employees who have access to confidential and proprietary information to sign a similar noncompetition, non-solicitation, and/or nondisclosure agreement. This ensures that sensitive information remains protected and that employees do not use their knowledge to benefit competitors or solicit employees. This is a fairly standard practice in franchising, as franchisors seek to protect their business model, trade secrets, and customer base.