Can Cream designate or approve the form of confidentiality agreement I use with my employees?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) adopt and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of any of our Confidential Information, including by establishing reasonable security and access measures, restricting its disclosure to key personnel, and/or by requiring persons who have access to such Confidential Information to be bound by contractual obligations to protect such Confidential Information and preserve our rights and controls in such Confidential Information, in each case that are no less protective or beneficial to us than the terms of this Agreement (and we reserve the right to designate or approve the form of confidentiality agreement that you use, provided that it is your responsibility to ensure that such agreement complies with and is enforceable under applicable laws in your jurisdiction); and
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has the right to designate or approve the form of confidentiality agreement that a franchisee uses with their employees. However, it remains the franchisee's responsibility to ensure that the agreement complies with and is enforceable under applicable laws in their jurisdiction.
This means that while Cream can provide a template or approve a franchisee's existing confidentiality agreement, the franchisee is ultimately responsible for ensuring that the agreement is legally sound and enforceable in their specific location. This includes understanding local laws regarding confidentiality, trade secrets, and employee rights.
For a prospective Cream franchisee, this highlights the importance of carefully reviewing any confidentiality agreement provided or approved by Cream with a qualified attorney in their jurisdiction. This will help ensure that the agreement is both compliant with local laws and adequately protects Cream's confidential information. It also underscores the need for franchisees to stay informed about any changes in local laws that could affect the enforceability of their confidentiality agreements.