What is the Pearce Bespoke franchisee liable for if they fail to obtain executed Confidentiality/Non-Competition Agreements?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to vigorously and vigilantly prosecute to the fullest extent permitted by law breaches of any Confidentiality/Non-Competition Agreement executed pursuant to this provision, and acknowledge Franchisor's right, to be exercised as Franchisor alone determines, to enforce the terms of any such executed Confidentiality/Non-competition Agreement. If the substantive provisions of the Confidentiality/Non-Competition Agreement have been breached by an individual employed, engaged, or otherwise serving the Pearce Bespoke Franchise who has not executed a Confidentiality/Non-Competition Agreement Franchisee must nevertheless vigorously and vigilantly prosecute such conduct to the fullest extent permitted by law. Franchisee shall indemnify and hold Franchisor harmless from any and all liability, loss, attorneys' fees, or damage Franchisor may suffer as a result of Franchisee's failure to obtain executed Confidentiality/Non-Competition Agreements from employees, agents and third persons as required by this Section.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, a franchisee is responsible for obtaining signed Confidentiality/Non-Competition Agreements from all employees with managerial duties who have access to the franchisor's confidential information, as well as from all corporate officers, directors, and shareholders (or partners, if the franchisee is a partnership). These agreements ensure the confidentiality of Pearce Bespoke's proprietary information.
If an individual employed by the Pearce Bespoke franchise breaches the confidentiality agreement, even if they have not signed one, the franchisee is obligated to vigorously prosecute such conduct to the fullest extent of the law.
Moreover, the franchisee is required to indemnify Pearce Bespoke and hold the franchisor harmless from any liability, loss, attorneys' fees, or damages that Pearce Bespoke may incur due to the franchisee's failure to obtain the required executed Confidentiality/Non-Competition Agreements from their employees, agents, and other relevant parties. This means the franchisee could be financially responsible for any legal costs or damages suffered by Pearce Bespoke as a result of this failure.