Who is included in the non-compete agreement for Coffee News franchisees?
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 must ensure that their employees, officers, key personnel, agents, or stockholders are bound by the non-disclosure and confidentiality agreements. This means that the franchisee is responsible for making sure these individuals do not disclose confidential information about the Coffee News business.
These individuals must adhere to the contractual provisions regarding confidential information. If Coffee News has to take legal action to enforce these confidentiality agreements, the franchisee may be liable for damages, reasonable attorney fees, and court costs.
This requirement ensures that the Coffee News' trade secrets, operational methods, advertising strategies, promotional ideas, and other business-related information remain protected, even after the termination, expiration, transfer, or assignment of the franchise agreement. This protection extends to the franchisor's business format and any other information related to the Coffee News business.