Is the agreement related to the Pearce Bespoke Business considered an employment agreement?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Confidentiality and Restrictive Covenant Agreement that a franchisee may use with their employees, independent contractors, officers, and/or directors is explicitly not an employment agreement. Instead, it is defined solely as a confidentiality agreement related to information, materials, and access provided in connection with the Pearce Bespoke Business. Pearce Bespoke Franchising, LLC is identified as a third-party beneficiary of this agreement, although they do not own or manage the franchised business.

This distinction is important for prospective Pearce Bespoke franchisees because it clarifies the nature of the legal relationship being established. The agreement focuses on protecting confidential information rather than governing the terms of employment or contractor relationships. Franchisees should consult with their own legal counsel to ensure that their employment or contractor agreements comply with all applicable laws and regulations, and that the confidentiality agreement is properly integrated into those relationships.

The FDD emphasizes that franchisees should have the agreement reviewed and approved by an independent local attorney before using it with an employee or contractor. This recommendation underscores the importance of ensuring that the agreement is legally sound and tailored to the specific circumstances of the franchisee's business and location. The sample agreement provided in the exhibit is for reference purposes only and should not be used without proper legal review.

By requiring this agreement, Pearce Bespoke aims to protect its confidential information and trade secrets, which are essential to maintaining the brand's competitive advantage. Franchisees benefit from this protection, as it helps to ensure the consistency and quality of the Pearce Bespoke brand across all locations. However, franchisees must also take responsibility for implementing and enforcing the agreement within their own businesses, and for ensuring that their employees and contractors understand their obligations under the agreement.