Can the Pearce Bespoke franchisor enforce the terms of the 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 Pearce Bespoke's 2025 Franchise Disclosure Document, the franchisor has the right to enforce the terms of any executed Confidentiality/Non-Competition Agreement. The franchisee is obligated to ensure that certain employees, such as those with managerial duties or access to confidential information, as well as corporate officers, directors, and shareholders (or partners, if the franchisee is a partnership), sign these agreements. These agreements ensure the confidentiality of information that Pearce Bespoke copyrights or designates as confidential and proprietary, both during and after their association with the franchise. Copies of these executed agreements must be provided to Pearce Bespoke upon request.
The franchisee is required to actively pursue legal action against any breaches of these Confidentiality/Non-Competition Agreements to the fullest extent permitted by law. Pearce Bespoke retains the right, at its sole discretion, to enforce these agreements. Even if an individual who has access to confidential information has not signed an agreement, the franchisee is still obligated to prosecute any breaches of confidentiality.
Furthermore, the franchisee must indemnify Pearce Bespoke against any losses, liabilities, attorney's fees, or damages that the franchisor incurs due to the franchisee's failure to obtain the required Confidentiality/Non-Competition Agreements from employees, agents, and third parties. This underscores the importance of franchisees diligently adhering to the franchisor's requirements regarding these agreements to protect confidential information and avoid potential legal and financial repercussions.