What specific damages can the Coffee News franchisor recover from a franchisee's employee who violates the non-competition agreement?

According to the 2025 Coffee News Franchise Disclosure Document, if a franchisee's employee violates the non-competition agreement, the franchisor can recover damages, reasonable attorney fees, and court costs. This is contingent upon the franchisee having executed a non-competition agreement with its employees, officers, key personnel, agents, or stockholders, ensuring they are bound by the contractual provisions.

This requirement ensures that Coffee News can protect its interests and confidential information. The non-competition agreement is designed to prevent individuals associated with the franchisee from engaging in activities that could harm the Coffee News business, such as working for a competing publication. By requiring franchisees to have their employees sign these agreements, Coffee News aims to create an additional layer of protection against potential breaches of confidentiality and competition.

The franchisee is responsible for ensuring that these agreements are in place and enforceable. If the franchisor has to take legal action to enforce these rights, the employee will be liable for damages, attorney fees, and court costs. This provision serves as a deterrent against violating the non-competition agreement and provides a legal recourse for Coffee News to recover losses incurred due to such violations.