Who specifies or approves the non-disclosure and confidentiality agreements that Cool Binz franchise employees must sign?
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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 52–53)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees must ensure that certain employees sign non-disclosure and confidentiality agreements at the start of their employment. These employees include the Managing Owner, Designated Managers, and sales and/or account management staff. Cool Binz specifies or approves the form of these agreements.
The agreements are designed to protect Cool Binz's confidential information. They prevent employees from disclosing trade secrets, customer lists, or any other proprietary information related to the Cool Binz system or business operations to outside parties. The agreements also aim to prevent employees from soliciting or servicing the franchise's customers, except in their capacity as Cool Binz employees, to the fullest extent allowed by law.
Cool Binz retains the right to request a copy of these signed agreements from the franchisee. This ensures that the franchisee is complying with the requirement to have these agreements in place and that Cool Binz can verify the protection of its confidential information. This is a fairly standard practice in franchising, as franchisors need to protect their intellectual property and business methods.
For a prospective Cool Binz franchisee, this means they must incorporate these non-disclosure agreements into their hiring process for relevant employees. They should obtain the specified or approved agreement forms from Cool Binz and ensure that all required employees sign them as a condition of employment. Failure to do so could result in a breach of the franchise agreement and potential legal consequences.