Is a Coffee News franchisee required to have its agents sign a non-disclosure agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.2 Use of Trade Secrets. Franchisee shall not directly or indirectly furnish to any other party any confidential information as to the "Coffee News" Format, methods of operation, advertising, promotion, ideas or any other information relating to Franchisor's business of "Coffee News" without the written consent of Franchisor. The provisions contained herein shall survive the termination, expiration, transfer, assignment, of this Agreement. 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, franchisees are required to have their agents sign a non-disclosure agreement. This agreement ensures that the agents are bound by the same confidentiality provisions as the franchisee, protecting Coffee News's trade secrets and confidential information. These provisions survive the termination, expiration, transfer, or assignment of the Franchise Agreement.
The non-disclosure agreement must be executed with the franchisee's employees, officers, key personnel, agents, or stockholders. This requirement ensures that all individuals associated with the franchisee's operations who have access to confidential information are legally obligated to protect it. This obligation extends to safeguarding the "Coffee News" format, operational methods, advertising strategies, promotional ideas, and any other information related to Coffee News's business.
If a Coffee News franchisee fails to ensure that their agents sign a non-disclosure agreement, they may be held liable for damages, reasonable attorney fees, and court costs if Coffee News has to take legal action to enforce their contractual rights. This underscores the importance of adhering to this requirement to avoid potential legal and financial repercussions.