Is a Crisp & Green franchisee required to have their managers and assistant managers sign nondisclosure agreements?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
You acknowledge that other CRISP & GREEN franchisees/area developers have or will be granted
franchises or area development rights at different times and in different situations, and further acknowledge that the provisions of such agreements may vary substantially from those contained in this Agreement. You shall not complain on account of any variation from standard specifications and practices granted to any other franchisee/area developer and shall not be entitled to require us to grant to you a like or similar variation thereof. The provisions set forth in the Franchise Agreement for your first Franchised Restaurant containing any covenants not to compete, confidentiality obligations, enforcement provisions, indemnification obligations, notice provisions, and sections referenced as "Relationship of the Parties" and "Miscellaneous" are incorporated into this Agreement by reference and will be applicable to this Agreement until such time as you sign a subsequent Franchise Agreement, at which time the provisions of the new agreement relating to covenants not to compete, confidentiality obligations, enforcement provisions, indemnification obligations, notice provisions, and sections referenced as "Relationship of the Parties" and "Miscellaneous" will be incorporated into this Agreement by reference in place of the previous provisions. Likewise, if you later sign yet another Franchise Agreement, at all times, the provisions contained in the last Franchise Agreement you sign with us, which relate to covenants not to compete, confidentiality obligations, enforcement provisions, indemnification obligations, notice provisions, and sections referenced as "Relationship of the Parties" and "Miscellaneous" are hereby incorporated into this Agreement by reference in place of the previous provisions. You acknowledge having received a copy of our current form of Franchise Agreement for use in the sale of Franchised Restaurants, and that until you sign an agreement for your first Franchised Restaurant, the provisions of the form we provided to you relating to these matters will be deemed incorporated in this Agreement by reference and applicable to this Agreement. Any reference to the expression "this Agreement" in those Sections will be interpreted as a reference to this Area Development Agreement, any reference to "Franchisee" or "you" in those Sections will read as "Developer," and any reference to "Designated Area" will read as "Development Area." Any provisions of this Agreement which, by their nature, may or are to be performed following expiration or termination of this Agreement, will survive termination or expiration.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
The 2024 Crisp & Green Franchise Disclosure Document does not explicitly state whether franchisees are required to have their managers and assistant managers sign non-disclosure agreements. However, it does mention confidentiality obligations within the context of franchise and area development agreements. Specifically, Item 23 references that the provisions set forth in the Franchise Agreement for the franchisee's first restaurant contain confidentiality obligations. These obligations, along with other provisions, are incorporated into the Area Development Agreement by reference.
This incorporation means that the confidentiality obligations outlined in the Franchise Agreement also apply to the Area Development Agreement until a subsequent Franchise Agreement is signed. When a new Franchise Agreement is signed, the confidentiality obligations in the newest agreement replace the previous ones. This ensures that the most current terms are always in effect. The FDD also states that the franchisee acknowledges receiving a copy of the current form of the Franchise Agreement, and its provisions relating to confidentiality will be deemed incorporated in the Area Development Agreement until an agreement for the first franchised restaurant is signed.
Because the FDD does not specify whether these confidentiality obligations extend to the franchisee's managers and assistant managers, it is important for a prospective franchisee to clarify this point with Crisp & Green. Understanding the scope of these obligations is crucial for ensuring compliance and protecting the franchisor's confidential information.