Can Kitchen Solvers require the designated manager to sign an agreement maintaining confidentiality?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Confidential Information. You and your Personal Guarantors (as described in Subparagraph 16.F) must not, during the term of this Agreement or thereafter, communicate, divulge or use for the benefit of any other person or entity any Confidential Information, except to such employees as must have access to it to operate your Business. For purposes of this Agreement, "Confidential Information" means proprietary information, knowledge and know-how, including processes, materials, methods, procedures, suggested pricing, specifications, techniques and other data concerning the methods of operation of a KITCHEN SOLVERS Business. Any and all Confidential Information must not be used for any purpose other than conducting your Business in the Territory. We may require that you obtain nondisclosure and confidentiality agreements in a form satisfactory to us from any persons owning a minority interest in your Business and from other key employees. You must provide copies of the executed agreements to us upon request.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 35–36)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, Kitchen Solvers can require franchisees to obtain nondisclosure and confidentiality agreements from certain individuals. Specifically, Kitchen Solvers may require these agreements from persons owning a minority interest in the business and from other key employees. These agreements must be in a form satisfactory to Kitchen Solvers, and copies of the executed agreements must be provided to Kitchen Solvers upon request.
This means that as a Kitchen Solvers franchisee, you might need to ensure that minority owners or key employees sign confidentiality agreements to protect Kitchen Solvers' confidential information. The FDD does not specifically state that a designated manager must sign a confidentiality agreement, but it does allow Kitchen Solvers to require such agreements from key employees, which could include a manager.
It is important for prospective franchisees to clarify with Kitchen Solvers whether a designated manager is considered a "key employee" for the purposes of requiring a confidentiality agreement. Understanding this requirement is crucial, as failure to comply could potentially lead to a breach of the franchise agreement. Franchisees should also review the form of the nondisclosure and confidentiality agreement to understand the scope of the confidential information covered and the obligations placed on the individuals signing the agreement.