Is Clean Your Dirty Face a third-party beneficiary of the non-disclosure and non-competition agreements?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not use our confidential information in an unauthorized manner. You must adopt and implement procedures to prevent unauthorized use or disclosure of Confidential Information, including restricting its disclosure to personnel of your CYDF Facial Bar and certain other people and using non-disclosure and non-competition agreements with those having access to Confidential Information in a form determined by us. We may regulate the form of agreement that you use, and we will be a third-party beneficiary of that agreement with independent enforcement rights.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 42–43)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, Clean Your Dirty Face may regulate the form of non-disclosure and non-competition agreements that franchisees use with their personnel and certain other people. Furthermore, Clean Your Dirty Face will be a third-party beneficiary of these agreements, possessing independent enforcement rights.
This means that Clean Your Dirty Face has the right to enforce the terms of the non-disclosure and non-competition agreements entered into between the franchisee and their employees or other relevant parties. This is in addition to the franchisee's own right to enforce these agreements.
For a prospective Clean Your Dirty Face franchisee, this clause offers an additional layer of protection for the franchisor's confidential information and competitive interests. It allows Clean Your Dirty Face to directly pursue legal action against individuals who violate these agreements, without necessarily relying on the franchisee to take the initial steps. This is a common practice in franchising, as it ensures the franchisor has the means to protect its system-wide interests.