What are the obligations of an Afuri Ramen Dumpling franchisee regarding employees and consultants who receive Confidential Information?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.3 Safeguard of Confidential Information.
You agree to exercise the highest degree of care in safeguarding Confidential Information against loss, theft, or other inadvertent disclosure.
You agree to accord to the Confidential Information the same degree of care and use the same confidentiality protection practices as you exercise or employ with respect to your confidential or proprietary information (but no less than a reasonable degree of care).
This includes obligating employees and consultants who receive Confidential Information to covenants of confidentiality and non-use.
- 1.4 Notice.
You agree that if you or your employees and agents are served with any subpoena or other compulsory judicial or administrative process calling for production of Confidential Information, you will immediately notify us in order that we may take such action as we deem necessary to protect our interests.
You agree to execute any and all documents and to do all acts and things in the opinion of our counsel are necessary or advisable to protect our interests.
- **2.
COVENANT OF NON-DISCLOSURE**.
You specifically acknowledge that you will receive valuable specialized and Confidential Information, including information regarding our operational, sales, promotional and marketing methods and techniques and the System.
You agree not to disclose Confidential Information to any third party and to limit disclosure within your association to designated employees approved by us.
Disclosures to designated employees will be done on a "need to know" basis to the extent necessary for them to perform the duties of their employment with you.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, franchisees have specific obligations regarding the handling of confidential information by their employees and consultants. Franchisees must exercise a high degree of care in safeguarding confidential information against loss, theft, or inadvertent disclosure. This includes using the same confidentiality protection practices that they employ with respect to their own confidential information, but no less than a reasonable degree of care.
Specifically, Afuri Ramen Dumpling franchisees are required to obligate their employees and consultants who receive confidential information to covenants of confidentiality and non-use. This means that these individuals must agree to protect the confidentiality of the information and not use it for any unauthorized purpose. Furthermore, franchisees must limit disclosure within their association to designated employees approved by Afuri Ramen Dumpling, and only on a "need to know" basis to the extent necessary for them to perform their job duties.
If a franchisee or their employees or agents are served with any subpoena or other compulsory judicial or administrative process calling for production of confidential information, the franchisee must immediately notify Afuri Ramen Dumpling. This allows Afuri Ramen Dumpling to take action to protect its interests. The franchisee must also execute any documents and take any actions that Afuri Ramen Dumpling's counsel deems necessary to protect their interests. These measures ensure that Afuri Ramen Dumpling's confidential information remains protected, even in legal or administrative proceedings.