What is the definition of 'Confidentiality Agreement' according to the Itan FDD?

According to Itan's 2025 Franchise Disclosure Document, the Confidentiality Agreement is a document that must be signed by certain employees of the franchisee, as detailed in Section 14.5 of the agreement. The current form of this agreement is included as ATTACHMENT "G" to the franchise agreement.

This agreement is crucial for protecting Itan's confidential information and trade secrets. By requiring employees to sign it, Itan aims to prevent the unauthorized disclosure or use of sensitive information that could harm the franchise system. This is a standard practice in franchising, as franchisors need to safeguard their proprietary information.

Section 14.5 of the franchise agreement further stipulates that franchisees must ensure their personnel comply with the Confidentiality Agreements. Franchisees are also obligated to notify Itan immediately if they become aware of any breaches of these agreements. Moreover, franchisees are responsible for reimbursing Itan for all expenses, including attorney's fees and court costs, incurred in enforcing a Confidentiality Agreement. This highlights the importance Itan places on protecting its confidential information and the responsibility it places on franchisees to assist in that effort.

Prospective franchisees should carefully review Attachment G, the actual Confidentiality Agreement form, to fully understand the obligations it imposes on their employees. They should also factor in the potential costs associated with enforcing these agreements when assessing the overall financial viability of the Itan franchise.