Besides the franchisee, who else might Face Foundrie require to sign confidentiality, non-competition, and non-solicitation agreements?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
You must implement all reasonable procedures we prescribe from time to time to prevent unauthorized use or disclosure of confidential information. In addition, we may require you, your Operating Partner, and other owners, to sign confidentiality, non-competition and non-solicitation agreements in the form(s) approved by us which will prohibit them from directly or indirectly engaging in activities that compete with the operations of your Facial Bar or any other Facial Bar, disclosing our or our affiliates' confidential and proprietary information and trade secrets, and soliciting our or our affiliates' employees and employees of other Facial Bars. We may also require certain key employees who have received our confidential and proprietary information to enter into a confidentiality agreement. At our request, you must deliver copies of such agreements to us. These agreements must include specific identification of us as a third-party beneficiary with the independent right to enforce the covenants. We have the right to take legal action against you if there has been an unauthorized use of our confidential information or trade secrets through you or your employees or others.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 48–49)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, in addition to the franchisee, Face Foundrie may require an Operating Partner, other owners, and certain key employees to sign confidentiality, non-competition, and non-solicitation agreements. These agreements aim to prevent these individuals from engaging in activities that compete with Face Foundrie, disclosing confidential information or trade secrets, and soliciting employees of Face Foundrie or its affiliates.
These agreements are designed to protect Face Foundrie's business interests and proprietary information. The agreements prohibit those who sign from directly or indirectly engaging in activities that compete with the operations of the franchisee's Facial Bar or any other Facial Bar. They also prevent the signees from disclosing Face Foundrie's or its affiliates' confidential and proprietary information and trade secrets, as well as from soliciting Face Foundrie's or its affiliates' employees and employees of other Facial Bars.
Face Foundrie requires that these agreements identify them as a third-party beneficiary, granting them the independent right to enforce the covenants. Franchisees must provide copies of these agreements to Face Foundrie upon request. Face Foundrie retains the right to take legal action against a franchisee if there is unauthorized use of confidential information or trade secrets through the franchisee, their employees, or others.
This requirement is fairly standard in franchising, as franchisors need to protect their brand, trade secrets, and customer base. Prospective franchisees should carefully review the specific terms of these agreements and understand their obligations before signing the Franchise Agreement. It is also important to understand who qualifies as a "key employee" and what responsibilities the franchisee has in ensuring these individuals comply with the agreements.