What must a Fitstop franchisee do with the Confidentiality and Non-Competition Agreement?
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 is obligated to ensure that their Designated Manager and any personnel with access to Fitstop's Confidential Information sign a Confidentiality and Non-Competition Agreement. This agreement must be in the form that Fitstop prescribes, as detailed in their current manuals or franchise agreement.
The purpose of this agreement is to protect the confidentiality of information that employees receive during their employment with the Fitstop franchise. It also restricts their right to work for a competitor while employed by the franchisee.
Fitstop is identified as a third-party beneficiary in this agreement, granting them independent enforcement rights. This means Fitstop can directly enforce the agreement against the employee, even though the employee is employed by the franchisee. This is a common practice in franchising to protect the franchisor's confidential information and trade secrets.
'Confidential Information' includes all confidential information and know-how relating to the administration and operation of a Fitstop franchised business including all systems, processes, procedures, software, databases, logos, manuals, advertising information and promotional materials.