Are all Owners bound by the confidentiality provisions in the Pearce Bespoke franchise agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
We may require every general partner and limited partner, if you are a partnership or limited partnership; or every member, if you are a limited liability company, or every stockholder or other holder of equity interest, if you are a corporation (collectively, "Owners"), to personally guarantee your obligations under the franchise agreement or area development agreement and also agree to be personally bound by, and jointly and severally liable for the breach of, any provision of the franchise agreement or area development agreement. The Owners agree to discharge all of their obligations under the franchise agreement and area development agreement. Furthermore, all Owners are bound by all provisions of the franchise and area development agreements, including but not limited to, maintaining the confidentiality of proprietary information and trade secrets as described in Item 14 and the noncompete covenants described in Item 17. Lastly, all of your owners, management personnel, and employees who are provided access to the Manual or other confidential information must sign a Confidentiality Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, all Owners of a Pearce Bespoke franchise are bound by the confidentiality provisions outlined in the franchise agreement. The term 'Owners' refers to every general partner and limited partner (if the franchisee is a partnership or limited partnership), every member (if the franchisee is a limited liability company), or every stockholder or other holder of equity interest (if the franchisee is a corporation).
Pearce Bespoke requires these Owners to personally guarantee the franchisee's obligations under the franchise agreement or area development agreement. They must also agree to be personally bound by, and jointly and severally liable for, any breach of any provision within these agreements. This extends to maintaining the confidentiality of proprietary information and trade secrets, as detailed in Item 14, and adhering to the noncompete covenants described in Item 17 of the Franchise Agreement.
Furthermore, Pearce Bespoke mandates that all owners, management personnel, and employees who are granted access to the Manual or other confidential information must sign a Confidentiality Agreement. This ensures that anyone with access to sensitive information is legally obligated to protect it, reinforcing Pearce Bespoke's commitment to safeguarding its proprietary assets and trade secrets.