Summary A Franchise NDA (Non-Disclosure Agreement) is a confidentiality agreement that can be used by a franchisor to protect sensitive franchise-related information disclosed to prospective franchisee owners before the franchise agreement is entered into.
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Who should use a Franchise NDA? If you are a franchisor then a Franchise NDA can prove useful. When people express interest in becoming a franchise owner the franchisor often finds itself having to release sensitive franchise information to the enquirer. If the interest goes no further and the person does not buy into the franchise business, the franchisor needs a way of ensuring that the franchise business’ confidential information cannot be misused. The Franchisor’s NDA provides that the information disclosed by the franchisor cannot be distributed or used by the prospective franchise applicant.
What does the contract say? The Franchisor’s NDA:
- Generally identifies the protected information
- Prohibits the prospective franchise owner or other interested party from disclosing or using the information
- Provides for damages
- Includes a non-circumvention clause
How long is the document? This franchises confidentiality agreement can be printed onto three pages.
What do you need to do to use a franchise’s confidentiality agreement?
- Read the terms of this template NDA to ensure that it suits your requirements. Make any changes that you may require.
- Complete all details relating to the franchisor and the other party.
- Get the confidentiality agreement signed by both parties.
- Ensure that you also have your Franchise Application Form, Franchise Agreement and Franchise Disclosure form ready.
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