Who prescribes the form of the noncompetition, nonsolicitation and/or nondisclosure agreement for Cinnaholic employees?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
As a condition to Franchisor's execution of this Agreement, Franchisee, if requested by Franchisor, shall cause each of its management and supervisory employees and other employees to whom disclosures of confidential information are made to execute a noncompetition, nonsolicitation and/or nondisclosure agreement in the form(s) prescribed by Franchisor from time to time.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisor prescribes the form of the noncompetition, nonsolicitation, and/or nondisclosure agreement that the franchisee must have their management, supervisory, and other employees who have access to confidential information sign. Specifically, the franchisee is required to ensure these employees execute these agreements as a condition of Cinnaholic's execution of the Franchise Agreement, if requested by Cinnaholic.
This requirement ensures that Cinnaholic can protect its confidential information and system standards by legally binding the franchisee's employees to certain obligations. It also allows Cinnaholic to maintain uniformity and consistency across all franchise locations, as the terms of these agreements are dictated by the franchisor.
As a prospective franchisee, it is important to understand the scope and enforceability of these agreements. Franchisees should review the standard form of these agreements with legal counsel to understand the obligations they place on their employees and to ensure compliance with local laws. Franchisees should also be aware of the potential costs associated with enforcing these agreements, should an employee violate them.