Franchise Non Disclosure Agreement

Virtually every franchise business owner requires a franchisee prospect to sign a NDA (Non disclosure agreement) before showing the prospective franchisee trade secrets regarding their franchise business model.

The franchise non disclosure agreement is a legally binding document that acknowledges the fact that the potential franchisee will be shown information about the franchise business that the franchise company as a propriety interest in maintaining the confidentiality of and as such the franchisee prospect undertakes not to disclose any such information and either purposely or otherwise let it enter into the public domain.

Also part of the non disclosure agreement should limit the amount of any confidential information that a franchisee prospect can disclose to their professional advisers and accountants etc to such as is deemed necessary for the purposes of the franchise proposal.

Finally the non disclosure agreement will usually have a clause that requests the return of any confidential material or documents regarding the franchise business which are held by the prospect upon completion of the franchise proposal.

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Tags: franchise business, franchise business model, franchise non disclosure agreement, franchise proposal, franchisee prospect, nda, non disclosure agreement, trade secrets

This entry was posted on Friday, February 13th, 2009 at 6:15 pm and is filed under Franchise Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.