What is the Pearce Bespoke franchisee's obligation regarding prosecuting breaches of confidentiality agreements, to the fullest extent?
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 has specific obligations regarding confidentiality and non-competition agreements. The franchisee must ensure that all employees with managerial duties and access to the franchisor's confidential information, as well as corporate officers, directors, and shareholders (or all partners, if the franchisee is a partnership), sign confidentiality and non-competition agreements. These agreements must be in a form satisfactory to Pearce Bespoke, ensuring the confidentiality of information that Pearce Bespoke copyrights or designates as confidential and proprietary. Copies of these executed agreements must be provided to Pearce Bespoke upon request.
The Pearce Bespoke franchisee is obligated to vigorously and vigilantly prosecute any breaches of these confidentiality/non-competition agreements to the fullest extent permitted by law. This obligation extends even to situations where an individual employed by the franchise who has not signed such an agreement breaches the substantive provisions of the agreement.
Furthermore, the Pearce Bespoke franchisee is required to indemnify and hold Pearce Bespoke harmless from any liability, loss, attorneys' fees, or damages that Pearce Bespoke may incur as a result of the franchisee's failure to obtain the required confidentiality agreements from employees, agents, and third parties. This means that the franchisee bears the financial responsibility for any repercussions arising from not securing these agreements as mandated by the franchise agreement.