Besides franchisees, who else is prohibited from disclosing Mr. Sandless' Confidential Information?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall require and obtain execution of covenants similar to those set forth in this Section 19.4 (including covenants applicable upon the termination of a person's employment with you) from all employees, contractors or third persons who will have access to Mr. Sandless proprietary and Confidential Information, and shall provide to us to an executed versions thereof. Such covenants shall be substantially in the form set forth in Attachment 4 as revised and updated from time to time and contained in the Manual. You shall indemnify and hold us harmless from any and all liability, loss, attorneys' fees, or damage we may suffer as a result of your failure to obtain executed restricted covenants by employees, agents and third persons as required by this Section.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, employees, contractors, and other third parties who have access to Mr. Sandless's confidential information are also prohibited from disclosing it. As a Mr. Sandless franchisee, you must ensure that these individuals sign confidentiality agreements similar to those in Section 19.4 of the franchise agreement. These agreements should also address obligations even after their employment or contract ends. Attachment 4 provides a template for these agreements, which may be updated periodically and found in the manual.
As a franchisee, you are responsible for obtaining these signed confidentiality agreements and providing copies to Mr. Sandless. Failure to do so could result in liability for any losses, attorney's fees, or damages Mr. Sandless incurs due to the employee's, contractor's, or third party's unauthorized disclosure of confidential information. This requirement is intended to protect Mr. Sandless's proprietary information and maintain the integrity of the franchise system.
This is a fairly standard practice in franchising, as franchisors need to protect their trade secrets and confidential business information. Franchisees are often the first line of defense in ensuring this protection, as they directly manage the employees and contractors who have access to sensitive information. The Mr. Sandless franchise agreement places the onus on the franchisee to actively manage and enforce these confidentiality obligations.