Can Crave Cookies require a franchisee to have their general manager sign a confidentiality and non-compete agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.3 General Manager and Key Employees. If requested by Crave Cookies Franchising, Franchisee will cause its general manager and other key employees to sign Crave Cookies Franchising's then-current form of confidentiality and non-compete agreement (unless prohibited by applicable law).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 33)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies can request that a franchisee have their general manager and other key employees sign Crave Cookies' current confidentiality and non-compete agreement, unless it is prohibited by law.
This requirement ensures that the general manager and key employees are legally bound to protect Crave Cookies' confidential information and are restricted from engaging in competitive activities, which aligns with standard franchising practices to safeguard the brand's interests. The franchisee bears the responsibility of ensuring compliance, emphasizing the importance of selecting trustworthy individuals for these critical roles.
It is important to note the clause 'unless prohibited by applicable law,' which suggests that the enforceability of such agreements may vary depending on local regulations. A prospective Crave Cookies franchisee should consult with legal counsel to understand the specific requirements and limitations in their jurisdiction to ensure compliance and avoid potential legal issues.