Who is included in the non-disparagement agreement for a Golden Krust Caribbean Restaurant franchise?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
During and after the term of this Agreement, Franchisee and its owners agree not to (and to use best efforts to cause current and former shareholders, members, officers, directors, principals, agents, partners, employees, representatives, attorneys, spouses, affiliates, successors and assigns not to) (i) disparage or otherwise speak or write negatively, directly or indirectly, of Franchisor, its affiliates, any of Franchisor's or its affiliates' directors, officers, employees, representatives or affiliates, the Golden Krust brand, the Golden Krust System, any Golden Krust Restaurant, any business using the Marks, or (ii) take any other action which would, directly or indirectly, subject the Golden Krust brand to ridicule, scandal, reproach, scorn, or indignity, or which would negatively impact the goodwill of Franchisor, the Golden Krust System or any Golden Krust Restaurant, or which would constitute an act of moral turpitude. The provisions of this Section survive expiration or termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, the non-disparagement agreement for a Golden Krust Caribbean Restaurant franchise extends beyond just the franchisee. It includes the franchisee and their owners, as well as requiring them to use their best efforts to ensure that current and former shareholders, members, officers, directors, principals, agents, partners, employees, representatives, attorneys, spouses, affiliates, successors, and assigns also adhere to the agreement.
This means that a wide range of individuals and entities connected to the franchisee's business are legally obligated not to speak or write negatively about Golden Krust Caribbean Restaurant. This encompasses the franchisor, its affiliates, directors, officers, employees, representatives, the Golden Krust brand, the Golden Krust System, any Golden Krust Restaurant, and any business using the Marks. The agreement also prohibits any actions that could subject the Golden Krust brand to ridicule, scandal, or negatively impact its goodwill.
The non-disparagement clause remains in effect both during and after the franchise agreement term. This extended reach is designed to protect the reputation and goodwill of the Golden Krust Caribbean Restaurant brand, ensuring that those associated with the franchise do not engage in any behavior that could harm the brand's image, even after their formal relationship with the franchise has ended.
For a prospective franchisee, this clause highlights the importance of ensuring that all individuals and entities connected to their franchise business are aware of and comply with the non-disparagement agreement. Failure to do so could result in legal repercussions and potential damage to the franchisee's relationship with Golden Krust Caribbean Restaurant.