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What section of the Annex Brands Franchise Agreement covers confidential information related to Annex Brands?

Annex_Brands Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee acknowledges and agrees that Franchisee will not acquire any interest in the Confidential Information, other than the right to use it in the operation of the Center during the term of the Franchise, and that the use or duplication of the Confidential Information in any other business would constitute an unfair method of competition. Franchisee acknowledges and agrees that the Confidential Information is owned by, and constitutes a trade secret of Franchisor. Information is not considered to be Confidential Information if: 1) it is in the public domain; 2) it is received from a third party other than Franchisor; or 3) it is developed by Franchisee as demonstrated by documentary proof. Franchisee agrees that he, she or they: 1) will not use the Confidential Information in any other business or capacity; 2) will maintain the absolute confidentiality of the Confidential Information during and after the term of the Franchise; 3) will not make unauthorized copies of any portion of the Confidential Information disclosed to Franchisee in the Manuals, in writing or otherwise; and 4) will adopt and implement all reasonable procedures prescribed periodically by Franchisor to prevent unauthorized use or disclosure of the Confidential Information, including restrictions on disclosure of the Confidential Information to managers and other personnel of the Center, and the use of non-disclosure agreements with managers and other personnel who have access to the Confidential Information. Franchisee acknowledges and agrees that it may not disclose any Confidential Information to any Premises Owner (as defined in Subsection 3.B of this Agreement), except with the express consent of Franchisor, and that there is no implied consent from Franchisor to do so.

Source: Item 22 — Contracts (FDD pages 109–110)

What This Means (2025 FDD)

According to the 2025 FDD, the Annex Brands Franchise Agreement addresses confidential information. The agreement states that franchisees acknowledge they won't acquire any rights to the confidential information, except to use it during the franchise term. Using or copying this information in another business is considered unfair competition.

The Franchise Agreement specifies that the confidential information is owned by Annex Brands and constitutes a trade secret. Information is not considered confidential if it is publicly available, received from a third party, or developed by the franchisee with documented proof.

The agreement also outlines that franchisees must maintain the confidentiality of the information during and after the franchise term, avoid unauthorized copies, and implement procedures to prevent unauthorized use or disclosure. Franchisees are restricted from disclosing confidential information to premises owners without express consent from Annex Brands.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.