Under what condition is a Cinnaholic franchisee required to have its employees execute a noncompetition, nonsolicitation and/or nondisclosure agreement?
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 the 2025 Cinnaholic Franchise Disclosure Document, a franchisee is required to have its employees sign a noncompetition, nonsolicitation, and/or nondisclosure agreement under a specific condition. If Cinnaholic requests it, the franchisee must ensure that each of its management, supervisory, and other employees who have access to confidential information execute such an agreement. The form of this agreement will be determined by Cinnaholic and may change over time.
This requirement ensures that Cinnaholic can protect its confidential information and business interests by preventing key employees of its franchisees from competing with the brand, soliciting its customers or employees, or disclosing sensitive information. The agreement aims to safeguard the Cinnaholic system and maintain a competitive advantage in the market.
For a prospective Cinnaholic franchisee, this means being prepared to implement and enforce these agreements with relevant employees. It also implies that the franchisee must stay updated on the specific forms and requirements prescribed by Cinnaholic. The franchisee should factor in the administrative and potential legal costs associated with implementing and enforcing these agreements. It is important to understand the scope and enforceability of these agreements within the relevant jurisdiction to ensure compliance and protect both the franchisee's and Cinnaholic's interests.