Are the layouts and designs of 7 Brew stores considered Confidential Information?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of this Agreement, "Confidential Information" means certain information, processes, methods, techniques, procedures, and knowledge, including know-how (which includes information that is secret and substantial), manuals, and trade secrets (whether or not judicially recognized as a trade secret), developed or to be developed by Franchisor relating directly or indirectly to the development or operation of a 7 BREW Store. With respect to the definition of know-how, "secret" means that the know-how as a body or in its precise configuration is not generally known or easily accessible, and "substantial" means information that is important and useful to Franchisee in developing and operating Franchisee's Store. Without limiting the foregoing, Confidential Information includes, but is not limited to:
- (1) information in the Operations Manual and Brand Standards;
- (2) layouts, designs, and other plans and specifications 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;
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the layouts and designs of 7 Brew stores are considered Confidential Information. The FDD specifies that Confidential Information includes, but is not limited to, information in the Operations Manual and Brand Standards, layouts, designs, and other plans and specifications for 7 Brew Stores, and methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, and knowledge and experience used in developing and operating 7 Brew Stores.
This means that as a franchisee, you are obligated to protect the confidentiality of these elements. You can only use this information as specified by 7 Brew during the term of your agreement, and you cannot use it in any other business or capacity. This restriction extends even after the termination of the franchise agreement, as long as the information is not generally known in the coffee industry.
The Franchise Agreement dictates that franchisees must implement reasonable procedures to prevent unauthorized use or disclosure of Confidential Information, including disclosing it only to store personnel who need the information to operate the store. Franchisees are also required to use confidentiality and nondisclosure agreements with those who have access to Confidential Information. 7 Brew retains the right to pre-approve these agreements to ensure adequate protection of its Confidential Information and the competitiveness of 7 Brew stores.
These confidentiality obligations are standard practice in franchising to protect the brand's competitive advantage and proprietary information. Franchisees should be aware of these restrictions and ensure they have adequate measures in place to safeguard 7 Brew's Confidential Information, as any unauthorized use or disclosure could have legal and financial repercussions.