Is a Pearce Bespoke franchisee required to provide copies of the executed Confidentiality/Non-Competition Agreements to the franchisor?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
All of Franchisee's employees who have managerial duties with respect to the Pearce Bespoke Franchise and who have access to Confidential Information of Franchisor, as well as all corporate officers, directors, and shareholders if Franchisee is a corporation (all partners if Franchisee is a partnership), must sign Confidentiality/Non-Competition Agreements in a form satisfactory to Franchisor, agreeing to maintain the confidentiality, during the course of their agreement and thereafter, of all information Franchisor copyrights or designates as confidential and proprietary. Copies of the executed agreements will be provided to Franchisor upon request.
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 Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee is required to obtain Confidentiality/Non-Competition Agreements from certain individuals. Specifically, all of the franchisee's employees who have managerial duties related to the Pearce Bespoke franchise and access confidential information, as well as all corporate officers, directors, and shareholders (or all partners if the franchisee is a partnership), must sign these agreements. The form of the agreement must be satisfactory to Pearce Bespoke. These agreements ensure that these individuals maintain the confidentiality of information that Pearce Bespoke copyrights or designates as confidential and proprietary, both during and after their association with the franchise.
Pearce Bespoke requires franchisees to provide copies of these executed agreements to the franchisor, but only upon request. This means that while franchisees must ensure these agreements are in place, they are not automatically required to submit them unless Pearce Bespoke specifically asks for them.
Furthermore, the franchisee is obligated to vigorously pursue any breaches of these agreements to the fullest extent of the law. Pearce Bespoke also retains the right to enforce these agreements themselves. Even if an individual who hasn't signed an agreement breaches the confidentiality provisions, the franchisee is still required to take legal action. The franchisee must also indemnify Pearce Bespoke against any losses, attorney's fees, or damages resulting from the franchisee's failure to obtain these agreements as required.
This requirement highlights the importance Pearce Bespoke places on protecting its confidential information and trade secrets. It also places a significant responsibility on the franchisee to ensure compliance and enforcement of these agreements, with potential legal and financial repercussions for failing to do so.