Under what circumstances may Anago disclose Confidential Information to a subfranchisee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We may disclose to you parts of the Confidential Information as are required for the operation of your Anago Subfranchise Rights Business during the Anago Initial Training Program, in the Anago Manuals, and in guidance and assistance furnished to you during the term of your Subfranchise Rights Agreement, and you may learn additional Confidential Information during the term. You may not, at any time, communicate, divulge or use any confidential information, trade secrets, knowledge or know-how concerning the methods of operation of the franchise system which you learn, including client information, product information, sales information, pricing information and merchandising systems. You may divulge the Confidential Information only to those of your employees that must have access to it in order to operate the Anago Subfranchise Rights Business and to Unit Franchisees in your Area, as authorized under your Subfranchise Rights Agreement. Any information, knowledge, know-how or techniques, including drawings, materials, equipment, specifications, techniques and other data which we mark as confidential, and any information, knowledge or know-how which comes from an analysis of this data is confidential, except information which you can show came to your attention before it was given to you by us, or which is or becomes publicly known (without you or a third party violating an obligation to us).
All persons whom you permit to have access to the Anago Manuals or any other Confidential Information, must first sign our form of confidentiality agreement. These agreements must identify us as a third-party beneficiary with the independent right to enforce them.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 41–43)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago may disclose parts of the Confidential Information to its subfranchisees under specific circumstances. This disclosure is permitted as required for the operation of the Anago Subfranchise Rights Business during the Anago Initial Training Program, within the Anago Manuals, and through guidance and assistance provided during the term of the Subfranchise Rights Agreement. Subfranchisees may also learn additional Confidential Information during the term of their agreement.
However, the subfranchisee is restricted from communicating, divulging, or using any confidential information, trade secrets, knowledge, or know-how concerning the methods of operation of the franchise system. This includes client information, product information, sales information, pricing information, and merchandising systems. The subfranchisee can only share Confidential Information with their employees who need it to operate the Anago Subfranchise Rights Business and to Unit Franchisees in their Area, as authorized under the Subfranchise Rights Agreement.
All individuals who are granted access to the Anago Manuals or any other Confidential Information must first sign Anago's confidentiality agreement. These agreements must identify Anago as a third-party beneficiary, giving Anago the independent right to enforce them. This ensures that Anago can directly protect its confidential information, even if the subfranchisee fails to do so. This is a common practice in franchising to protect the franchisor's proprietary information and trade secrets.