What is the employee's obligation regarding 7 Brew's Confidential Information during and after employment with the Franchisee?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not acquire any interest in any Confidential Information, other than the right to use certain Confidential Information as we specify in operating the Store during the Term according to Brand Standards and this Agreement's other terms and conditions. Using any Confidential Information in another business would constitute an unfair method of competition with us and our affiliates, suppliers, and franchisees. You acknowledge and agree that Confidential Information is proprietary, includes our and our affiliates' trade secrets, and is disclosed to you only on the condition that you, your owners, and your employees agree, and you and they do agree:
- (1) not to use any Confidential Information in another business or capacity and at all times to keep Confidential Information absolutely confidential, both during and after the Term (afterward for as long as the information is not generally known in the coffee industry);
- (2) not to make unauthorized copies of any Confidential Information disclosed via electronic medium or in written or other tangible form;
- (3) to adopt and implement all reasonable procedures we periodically specify to prevent unauthorized use or disclosure of Confidential Information, including disclosing it only to Store personnel and others needing to know the Confidential Information in order to operate the Store and using confidentiality and nondisclosure agreements with those having access to Confidential Information. (We have the right to pre-approve the forms of agreements you use solely to ensure that you adequately protect Confidential Information and the competitiveness of 7 BREW Stores. Under no circumstances will we control the forms or terms of employment agreements you use with Store employees or otherwise be responsible for your labor relations or employment practices.); and
- (4) not to sell, trade, or otherwise profit in any way from the Confidential Information (including by selling or assigning any Consumer Data or related information or Data), except during the Term using methods we have approved.
"Confidential Information" does not include information, knowledge, or know-how that lawfully is or becomes generally known in the coffee industry or that you knew from previous business experience before we gave you access to it (directly or indirectly). If we include any matter in
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, 7 Brew requires that franchisees, their owners, and their employees agree to protect the company's Confidential Information both during and after their association with the franchise. This obligation extends for as long as the information remains not generally known in the coffee industry. This means that employees cannot use any Confidential Information in another business or capacity and must always keep it confidential.
Employees are prohibited from making unauthorized copies of Confidential Information, whether it's disclosed electronically or in written form. Franchisees must implement reasonable procedures to prevent unauthorized use or disclosure of Confidential Information, including disclosing it only to personnel who need to know it to operate the store. Franchisees are also required to use confidentiality and nondisclosure agreements with those who have access to Confidential Information. While 7 Brew has the right to pre-approve the forms of these agreements to ensure adequate protection of Confidential Information, they will not control the terms of employment agreements or be responsible for labor relations.
Furthermore, employees are barred from selling, trading, or profiting from the Confidential Information in any way, except during their employment and through approved methods. Confidential Information includes items such as the Operations Manual, Brand Standards, store layouts, designs, methods, formats, systems, procedures, sales and marketing techniques, and other knowledge related to operating a 7 Brew store. However, information that is already generally known in the coffee industry or that the employee knew from previous business experience before accessing 7 Brew's information is excluded from this definition.
For a prospective 7 Brew franchisee, this means they must ensure their employees understand and adhere to these confidentiality obligations. They will need to implement procedures and agreements to protect 7 Brew's Confidential Information and ensure that employees do not misuse it during or after their employment. This is a critical aspect of maintaining the integrity and competitiveness of the 7 Brew brand.