Can Cinnaholic require managers to sign a noncompetition agreement?
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, Cinnaholic may require managers to sign a noncompetition, non-solicitation, and/or nondisclosure agreement. This agreement would prevent managers from engaging in activities that compete with the franchisee's Cinnaholic bakery or any other Cinnaholic bakery. It also restricts them from disclosing confidential or proprietary information and trade secrets, as well as from soliciting employees of Cinnaholic or its franchisees.
This requirement extends not only to managers but also to other employees who have access to Cinnaholic's confidential and proprietary information. These employees may also be required to sign a similar noncompetition, non-solicitation, and/or nondisclosure agreement. The specific form of these agreements will be determined by Cinnaholic.
For a prospective Cinnaholic franchisee, this means that they should be prepared to ensure their managers and certain employees are willing to sign these agreements as a condition of their employment. This is a measure Cinnaholic takes to protect its brand, trade secrets, and customer relationships. Franchisees should review the specific terms of the noncompetition, non-solicitation, and nondisclosure agreements with their legal counsel to fully understand the scope of these restrictions and ensure compliance.