When must a Craters & Freighters franchisee obtain a signed copy of the Confidentiality and Non-Competition Agreement from every Restricted Person?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must ensure and require that all of Franchisee's owners, officers, directors, shareholders, and partners (each a "Restricted Person" and, collectively, "Restricted Persons") execute a prescribed form of confidentiality and non-competition agreement that will be in substantially the same form attached to this Agreement as Attachment F ("Confidentiality and Non-Competition Agreement").
Franchisee must obtain a signed copy of the Confidentiality and Non-Competition Agreement from every such Restricted Person prior to, or at the same time of, that Restricted Person undertaking its role with Franchisee.
Franchisee's spouse or significant other will also be bound by the same requirement and will sign the same Confidentiality and Non-Competition Agreement.
Franchisee must provide Franchisor with a copy of each signed Confidentiality and Non-Competition Agreement within ten (10) days of executing such Confidentiality and Non-Competition Agreement.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee must obtain a signed copy of the Confidentiality and Non-Competition Agreement from every Restricted Person prior to, or at the same time of, that Restricted Person undertaking its role with the franchisee. This requirement also extends to the franchisee's spouse or significant other, who must also sign the same agreement.
In practical terms, this means that before any owner, officer, director, shareholder, partner, or the franchisee's spouse/significant other begins working with the Craters & Freighters franchise, they must sign the Confidentiality and Non-Competition Agreement. This agreement is in substantially the same form as Attachment F to the Franchise Agreement. The purpose is to protect Craters & Freighters' confidential information and trade secrets by ensuring that all individuals with access to this sensitive information are legally bound to maintain its confidentiality and refrain from competition.
Furthermore, the Craters & Freighters franchisee is obligated to provide the franchisor with a copy of each signed Confidentiality and Non-Competition Agreement within ten days of its execution. This ensures that Craters & Freighters has a record of all individuals who have agreed to these terms, allowing them to enforce the agreement if necessary. This is a standard practice in franchising to protect the brand and system standards.