What is the purpose of the Confidentiality and Non-Competition Agreement for trained employees of a Mr. Sandless franchisee?
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, franchisees must ensure that all employees, contractors, or third parties who have access to Mr. Sandless's confidential information sign agreements to protect that information. These agreements are similar to those the franchisee themselves must adhere to, especially concerning actions after their employment ends.
The purpose of these agreements is to safeguard Mr. Sandless's proprietary and confidential information. This includes trade secrets, operating procedures, and other sensitive data that gives Mr. Sandless a competitive advantage. By requiring employees to sign these agreements, Mr. Sandless aims to prevent the unauthorized disclosure or use of this information, which could harm the franchise system.
Mr. Sandless franchisees are required to obtain signed copies of these agreements and provide them to the franchisor. If a franchisee fails to secure these agreements, they could be held liable for any losses, legal fees, or damages suffered by Mr. Sandless as a result of the breach of confidentiality or non-competition. This requirement underscores the importance Mr. Sandless places on protecting its confidential information and maintaining a consistent standard of operation across all franchise locations.