Who must execute the Confidentiality Agreement when transferring a Cordova franchise?

According to Cordova's 2025 Franchise Disclosure Document, when transferring a franchise, the transferee's employees, directors, officers, independent contractors, and agents who will have access to Confidential Information must execute the Confidentiality Agreement attached as Exhibit 2.

This requirement ensures that the confidential information of the Cordova franchise system remains protected even after the transfer of ownership. It places the onus on the incoming franchisee (the transferee) to ensure that all individuals associated with their business who will have access to sensitive information are legally bound to maintain its confidentiality.

Prospective Cordova franchisees should be aware of this obligation and factor in the administrative and potential legal costs associated with ensuring that all relevant personnel execute the Confidentiality Agreement. This is a standard practice in franchising to protect the brand's proprietary information and maintain a competitive advantage.

It is important for potential franchisees to carefully review Exhibit 2 of the Franchise Agreement to understand the scope and terms of the Confidentiality Agreement. They should also consult with an attorney to ensure they fully understand their obligations and can properly implement the necessary procedures to comply with this requirement.