Besides employees, with whom else is a Coffee News franchisee required to execute a non-disclosure agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall execute a non-disclosure or confidentiality agreement with its employees, officers, key personnel, agents, or stockholders, as the case may be, that such employees, officers, key personnel, agents, or stockholders, as the case may be, shall be bound by the contractual provisions contained in this paragraph, and will be liable for damages, reasonable attorney fees and court cost if the Franchisor has to enforce their contractual rights by legal actions.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, a franchisee is required to execute a non-disclosure or confidentiality agreement with its employees, officers, key personnel, agents, or stockholders. These parties must adhere to the contractual provisions regarding confidential information related to the Coffee News format, methods of operation, advertising, promotion, ideas, or any other information pertaining to Coffee News's business.
This agreement ensures that confidential information remains protected and is not disclosed to third parties without the franchisor's written consent. The non-disclosure agreements with these individuals must include provisions that hold them liable for damages, reasonable attorney fees, and court costs if Coffee News has to legally enforce these confidentiality rights.
This requirement is a standard practice in franchising to protect the franchisor's trade secrets and proprietary information. By ensuring that all individuals with access to sensitive information are bound by confidentiality agreements, Coffee News aims to maintain its competitive advantage and protect its business model. Prospective franchisees should understand that enforcing these agreements may require legal action, and they should be prepared to bear the associated costs if breaches occur.