Who is required to sign confidentiality and nondisclosure agreements for a City Publications franchise?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's shareholders, officers, partners, members and managers may be required to execute nondisclosure and confidentiality agreements. Franchisee may be obligated to ensure that each of the foregoing persons execute a nondisclosure and confidentiality agreement at the time this Agreement is executed or prior to such persons becoming shareholders, officers, partners, members or managers, whichever is earlier. Franchisor shall be a third party beneficiary with the right to enforce covenants contained in such agreements. The spouse of each person identified as Franchisee under the terms of this Agreement will be required to sign a nondisclosure and non-competition agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 25–26)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, certain individuals associated with the franchisee and the franchisee's spouse may be required to sign confidentiality and nondisclosure agreements. Specifically, the franchisee's shareholders, officers, partners, members, and managers may be required to execute these agreements.
The franchisee is responsible for ensuring that these individuals sign the agreements either when the Franchise Agreement is executed or before they assume their respective roles, whichever occurs first. City Publications is designated as a third-party beneficiary, granting them the right to enforce the covenants outlined in these agreements.
In addition to the individuals listed above, the spouse of each person identified as the franchisee under the terms of the Franchise Agreement will also be required to sign a nondisclosure and non-competition agreement. This measure aims to protect City Publications' confidential information and competitive interests by extending the obligation of confidentiality and non-competition to the franchisee's immediate family.