Can Cool Binz require a franchisee to send them copies of the signed employee non-disclosure and confidentiality agreements?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
At the start of their employment, you must require, as consideration for employment, each of your Managing Owner, Designated Managers, sales and/or account management employees to sign non-disclosure and confidentiality agreements that we have specified or approved. Such agreements will prohibit disclosure, by the employee to any other person or legal entity, of any trade secrets, customer lists, or other information, knowledge, or know-how regarding the System or the operation of the COOL BINZ Business, which is deemed confidential and/or proprietary by us. Such employee non-disclosure and confidentiality agreements will, to the fullest extent permitted by applicable law, prevent employees from servicing or soliciting any of the customers of your Business, except in their capacities as employees of the COOL BINZ Business. We may require you to send us a copy of such agreements once fully signed.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz can require franchisees to provide copies of signed employee non-disclosure and confidentiality agreements. Specifically, Cool Binz requires franchisees to have their Managing Owner, Designated Managers, sales, and/or account management employees sign non-disclosure and confidentiality agreements at the start of their employment. These agreements must be either specified or approved by Cool Binz.
The purpose of these agreements is to protect Cool Binz's trade secrets, customer lists, and other confidential information related to the Cool Binz system and business operations. The agreements prevent employees from disclosing this information to any other person or legal entity. They also prevent employees, to the fullest extent permitted by law, from servicing or soliciting the franchisee's customers, except in their capacity as employees of the Cool Binz Business.
Cool Binz retains the right to request a copy of these signed agreements from the franchisee. This allows Cool Binz to ensure that franchisees are complying with the requirement to have these agreements in place and that the agreements meet Cool Binz's standards for protecting its confidential information. This is a fairly standard practice in franchising, as franchisors need to protect their systems and brand from misuse of proprietary information.