Can Sonesta Select Sonesta Essential require employees to sign a non-disclosure agreement?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to require that any employee, agent, or independent contractor that you hire execute a non-disclosure agreement to protect the Confidential Information. We reserve the right to regulate the form of non-disclosure agreement that you use and to be a third-party beneficiary of those agreements with independent enforcement rights. You acknowledge that any form of non-disclosure agreement that we require you to use, provide to you, or regulate the terms of, may or may not be enforceable in a particular jurisdiction. You agree that you are solely responsible for obtaining your own professional advice with respect to the adequacy of the terms and provisions of any confidentiality agreement that your employees, agents, and independent contractors sign.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential does reserve the right to mandate that franchisees require their employees, agents, or independent contractors to sign a non-disclosure agreement to protect confidential information. This measure ensures that sensitive business data remains secure and isn't compromised by unauthorized disclosure. Sonesta Select Sonesta Essential also retains the authority to regulate the form of the non-disclosure agreement used and can act as a third-party beneficiary with independent enforcement rights.
However, the FDD also acknowledges that the enforceability of any non-disclosure agreement that Sonesta Select Sonesta Essential requires franchisees to use or regulates the terms of may vary by jurisdiction. It is the franchisee's sole responsibility to seek professional advice to ensure the adequacy of the terms and provisions of any confidentiality agreement signed by their employees, agents, and independent contractors. This places the onus on the franchisee to ensure compliance with local laws and regulations regarding non-disclosure agreements.
This requirement is fairly standard in franchising, particularly for brands like Sonesta Select Sonesta Essential that rely on proprietary information and systems. Prospective franchisees should carefully review the specific terms of any required non-disclosure agreements and consult with legal counsel to understand their obligations and potential liabilities. They should also factor in the cost of obtaining legal advice on these matters as part of their initial investment assessment.