Who is responsible for enforcing compliance with the confidentiality agreement among Deka Lash employees?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
You will require, as a condition of the employment of your employees and anyone else providing services to you, that they maintain and protect our Confidential Information. You will ensure that all of your employees execute an approved confidentiality, non-disclosure, and non-competition agreement. You must follow our security procedures, which may include the execution of approved Intranet and Internet usage agreements. You will be responsible to enforce compliance with this Agreement by your employees. We may also enforce the nondisclosure agreement against your managers or employees, at our option. If you become aware of any actual or threatened violations by any of your employees or anyone else providing services to you, you will promptly and fully advise us in writing of all related facts known to you. You will cooperate with us in all ways we reasonably request to prevent or stop any violation. This may include instituting or permitting to be instituted in your name any demand, suit or action that we determine is advisable. The demand, suit or action may be maintained and prosecuted by you and us at your expense. You will also require any third party to whom you disclose any of our Confidential Information, including but not limited to consultants, distributors, and agents, to execute an approved confidentiality, nondisclosure and non-competition agreement.
Non-Employed Participants. All participants that (a) operate in the business, (b) are not listed owners on the franchise agreement, and (c) not formally recognized as employees, including, but not limited to, family members, close friends, significant others, spouses, and children (hereinafter "Non-Employed Participants"), must execute an approved confidentiality, non-disclosure, and non-competition agreement. Additionally, Non-Employed Participants must comply with any and all system policies, and Franchisor shall retain the right to terminate and/or limit any access or privileges.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees are responsible for ensuring their employees comply with the confidentiality agreement. As a condition of employment, franchisees must require their employees to sign an approved confidentiality, non-disclosure, and non-competition agreement. Franchisees must also adhere to Deka Lash's security procedures, which may include having employees execute approved Intranet and Internet usage agreements.
The franchisee is responsible for enforcing compliance with the agreement by their employees. However, Deka Lash retains the option to also enforce the nondisclosure agreement against the franchisee's managers or employees. If a franchisee becomes aware of any actual or threatened violations by their employees, they must promptly advise Deka Lash in writing of all related facts known to them and cooperate to prevent or stop any violation. This cooperation may include allowing Deka Lash to institute a demand, suit, or action in the franchisee's name, at the expense of both the franchisee and Deka Lash.
Furthermore, Deka Lash requires that any third party to whom the franchisee discloses confidential information, such as consultants, distributors, and agents, must also execute an approved confidentiality, non-disclosure, and non-competition agreement. This ensures that confidential information is protected even when disclosed to external parties. The FDD also specifies that non-employed participants who operate in the business, such as family members or close friends, must also execute a confidentiality agreement and comply with all system policies, with Deka Lash retaining the right to terminate or limit their access or privileges.