Are Cordova franchise managers required to sign a confidentiality agreement?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
cessary to operate a Cordova Business within your Operating Territory.
You may hire a manager to assume responsibility for the daily management and supervision of the Franchised Business, only if: (a) the manager meets all of our minimum standards and criteria for managers; (b) the manager completes our initial training program; (c) the manager signs our confidentiality and non-competition agreements; and (d) the manager agrees, in writing, to assume responsibility for the on-site management and supervision of the Franchised Business (an "Operating Manager"). All of your employees and other agents and representatives who may have access to our confidential information must sign a confidentiality agreement. We do not require that the Operating Manager own any equity interest in the franchise.
You, and if you are a partnership or Corporate Entity, each of your members, shareholders and/or partners (collectively, "Owners"), must personally guarantee all of your obligations to us under the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 32)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, if a franchisee hires a manager to oversee the daily operations, that manager must meet certain requirements, including signing confidentiality and non-competition agreements. This manager is referred to as an "Operating Manager." Additionally, all employees and other agents who have access to Cordova's confidential information must sign a confidentiality agreement.
This requirement ensures that Cordova's proprietary information and trade secrets are protected. The confidentiality agreement prevents managers and employees from disclosing sensitive business information to competitors or using it for their own personal gain. This is a common practice in franchising, especially for businesses like Cordova that rely on specific systems and processes.
Cordova also provides a sample confidentiality agreement as Exhibit 2 in the Franchise Agreement. However, Cordova advises franchisees to have this agreement reviewed and approved by an independent local attorney before using it with an employee or contractor. This is to ensure that the agreement complies with local laws and adequately protects the franchisee's interests.
In practical terms, this means a Cordova franchisee must ensure that any manager they hire to run the business signs both a confidentiality and a non-competition agreement. They must also ensure that all employees with access to confidential information sign a confidentiality agreement. Failure to enforce these agreements could put the franchisee at risk of losing valuable business information and potentially facing legal action.