Does the 7 Brew confidentiality agreement cover data generated by the store's operation?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
s of, and complied with our directions in responding to, the proceeding. At our option, we and/or our affiliate(s) may defend and control the defense of any proceeding arising from or relating to your use of any Mark under this Agreement.
9. Confidential Information
We and our affiliates possess (and will continue to develop and acquire) certain confidential information, some of which constitutes trade secrets under applicable Law, relating to developing and operating 7 BREW Stores (the "Confidential Information"), which includes but is not limited to:
- (1) information in the Operations Manual and Brand Standards;
- (2) layouts, designs, and other Plans for 7 BREW Stores;
- (3) methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, and knowledge and experience used in developing and operating 7 BREW Stores;
- (4) marketing research and promotional, marketing, and advertising programs for 7 BREW Stores;
- (5) the standards, processes, information, and technologies involved in creating, developing, operating, maintaining, and enhancing digital and other sales platforms;
- (6) strategic plans, including expansion strategies and targeted demographics;
- (7) knowledge of specifications for and suppliers of, and methods of ordering, the Store's physical structure and certain Operating Assets, products, services, materials, and supplies that 7 BREW Stores use and sell;
- (8) knowledge of the operating results and financial performance of 7 BREW Stores other than the Store;
- (9) customer solicitation, communication, and retention programs, along with Data used or generated in connection with those programs;
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the confidentiality agreement does cover data generated by the store's operation. The FDD specifies that "Confidential Information" includes "all Data and other information generated by, or used or developed in, operating the Store, including Consumer Data". This means that any data created or utilized during the operation of the 7 Brew store is considered confidential and protected under the agreement. This extends to data contained within the computer system or provided by visitors to the System Website.
This broad definition of Confidential Information has several implications for a prospective 7 Brew franchisee. It restricts the franchisee's ability to use or disclose any data related to the store's operations, customer information, or system data. The franchisee must ensure that their employees also maintain this confidentiality, typically through their own confidentiality agreements. 7 Brew retains the right to pre-approve the form of these agreements to ensure adequate protection of confidential information.
The franchisee cannot sell, trade, or profit from this data, except during the term of the agreement and only through approved methods. Upon termination or expiration of the franchise agreement, the franchisee must cease using all Confidential Information and return all confidential materials. This includes Consumer Data. These stipulations are fairly standard in franchising, as franchisors need to protect their proprietary information and customer data. 7 Brew also has the right to contact customers to inform them that the store is no longer operating as a 7 Brew location, which is a fairly common practice to maintain brand consistency.
Furthermore, 7 Brew owns all intellectual property and other rights related to the System Website, including visitor data and customer information. Franchisees must adhere to Brand Standards for any marketing materials and obtain approval for any digital marketing or social media activities. This level of control ensures that all data and marketing efforts align with 7 Brew's overall strategy and brand image. Franchisees should be aware of these restrictions and ensure they have systems in place to protect this data and comply with 7 Brew's requirements.