What agreement must a Fitstop franchisee require their Designated Manager and personnel with access to confidential information to sign?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You must require your Designated Manager and any personnel having access to any of our Confidential Information to sign our then-current form of Confidentiality and Non-Competition Agreement set forth in our then-current Manuals or form of franchise agreement, where these individuals agree that they will maintain the confidentiality of information they receive in connection with their employment and restrict their right to work for a competitor while they are employed by you. This confidentiality agreement, which will be in a form that we prescribe, will identify us as a third-party beneficiary to the agreement and will give us independent enforcement rights.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 38–40)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee must require their Designated Manager and any personnel with access to confidential information to sign Fitstop's then-current form of Confidentiality and Non-Competition Agreement. This agreement is detailed in Fitstop's then-current manuals or form of franchise agreement.
The Confidentiality and Non-Competition Agreement ensures that these individuals maintain the confidentiality of the information they receive during their employment with the Fitstop franchise. It also restricts their ability to work for a competitor while employed by the franchisee. This agreement is designed to protect Fitstop's trade secrets and confidential information.
The agreement will identify Fitstop as a third-party beneficiary, granting Fitstop independent enforcement rights. This means Fitstop can directly enforce the agreement against the Designated Manager or personnel if they breach the confidentiality or non-competition terms, providing an additional layer of protection for Fitstop's confidential information.