When operating a Coffee News franchise, can I require a non-compete agreement from my employees?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
As the owner of the franchise(s), you are responsible for the compliance of all employees with the terms and conditions of the Franchise Agreement including your manager, on- premises supervisor or minority stockholder, if a company. If the franchisee is a company, there is no minimum equity interest required that the on-premises supervisor must have in the company. We do not impose any restriction that you must place on your managerial staff. You may, however, require a non-compete of all employees and a non-disclosure of trade secrets.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 24–25)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, franchisees have the option to require non-compete agreements from their employees. As the owner of the Coffee News franchise, you are responsible for ensuring that all employees, including managers and supervisors, comply with the terms and conditions outlined in the Franchise Agreement.
Coffee News does not impose any restrictions on the franchisee's managerial staff, giving you the flexibility to manage your team as you see fit. This includes the option to implement non-compete agreements and non-disclosure agreements to protect trade secrets.
While Coffee News allows franchisees to require non-compete agreements, it's important to note that the FDD also states that franchisees are responsible for compliance with all laws and regulations. Therefore, franchisees should ensure that any non-compete agreements they implement comply with applicable state and federal laws regarding enforceability and scope.