Does Cream have the right to 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 retains the right to designate or approve the form of confidentiality agreement that franchisees use with their employees. However, the franchisee is ultimately responsible for ensuring that the agreement complies with and is enforceable under applicable laws in their jurisdiction.
This means that while Cream can specify or approve the confidentiality agreement form, it is the franchisee's duty to make sure the agreement is legally sound and adheres to local laws. This responsibility includes understanding the legal requirements for confidentiality agreements in the relevant jurisdiction and ensuring that the agreement meets those standards.
For a prospective Cream franchisee, this implies a need to consult with legal counsel to review any confidentiality agreement form designated or approved by Cream. This will ensure that the agreement is enforceable and compliant with local laws. Franchisees should factor in the cost of legal review when assessing the overall investment and operational costs of the franchise.