Can Crave Cookies require managers and key employees of the franchisee to sign confidentiality agreements?
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 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 32–33)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies can request that franchisees ensure their general manager and other key employees sign confidentiality and non-compete agreements. These agreements must be in Crave Cookies' current form, unless such agreements are prohibited by applicable law. This requirement is designed to protect Crave Cookies' confidential information and business interests.
This provision means that as a Crave Cookies franchisee, you may need to incorporate these agreements into your hiring process for key personnel. It is important to understand the specific terms of Crave Cookies' standard confidentiality and non-compete agreements to ensure compliance and to properly inform your employees of their obligations. Franchisees should also be aware of any local or state laws that may restrict the enforceability of non-compete agreements.
It is fairly common in the franchise industry for franchisors to require confidentiality and non-compete agreements from key employees to protect their brand's trade secrets, operational methods, and customer relationships. Franchisees should consult with an attorney to ensure that these agreements are legally sound and enforceable in their specific jurisdiction. This will help protect both the franchisor's and the franchisee's interests while complying with local laws.