Is a Coffee News franchisee required to have its officers 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, Coffee News franchisees are required to ensure that their employees, officers, key personnel, agents, or stockholders sign a non-disclosure or confidentiality agreement. This agreement legally binds these individuals to the confidentiality provisions outlined in the franchise agreement.
This requirement means that a Coffee News franchisee must take proactive steps to protect the franchisor's confidential information and trade secrets. The franchisee is responsible for implementing and enforcing these non-disclosure agreements within their own business operations. This includes ensuring that all relevant parties understand their obligations and the potential consequences of breaching the agreement.
Furthermore, the FDD states that the franchisee will be liable for damages, reasonable attorney fees, and court costs if Coffee News has to take legal action to enforce these contractual rights. This underscores the importance of franchisees diligently adhering to this requirement to avoid potential legal and financial repercussions. This is a fairly standard practice in franchising, as franchisors need to protect their intellectual property and operational methods.