Is the Coffee News franchisee required to execute a non-disclosure agreement with its employees?
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, Coffee News franchisees are required to execute a non-disclosure or confidentiality agreement with their employees, officers, key personnel, agents, or stockholders. This agreement ensures that these individuals are bound by the contractual provisions related to confidential information outlined in the franchise agreement.
This requirement is in place to protect Coffee News's trade secrets, including the "Coffee News" format, methods of operation, advertising, promotion, ideas, and any other information related to the franchisor's business. By having employees and other related parties sign a non-disclosure agreement, the franchisee helps to prevent the unauthorized dissemination of sensitive information that could harm the Coffee News brand and its competitive advantage.
The franchisee is liable for damages, reasonable attorney fees, and court costs if Coffee News has to take legal action to enforce these contractual rights due to a breach of the non-disclosure agreement by the franchisee's employees or related parties. This underscores the importance of ensuring that all individuals associated with the Coffee News franchise understand and adhere to the confidentiality obligations outlined in the agreement.