Is Aunt Millies Bakeries' know-how considered proprietary information?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
§6.1 CONFIDENTIAL INFORMATION. As a result of this Agreement, DISTRIBUTOR may have access to or obtain certain information not available to the general public regarding AUNT MILLIE'S business ("Confidential Information"). DISTRIBUTOR acknowledges that the Confidential Information constitutes valuable trade secrets to AUNT MILLIE'S and DISTRIBUTOR agrees that it shall use AUNT MILLIE'S Confidential Information solely in accordance with the provisions of this Agreement and it will not disclose, or permit the disclosure of same, directly or indirectly, to any third party without AUNT MILLIE'S prior written consent. DISTRIBUTOR agrees to exercise due care in protecting the Confidential Information from unauthorized use and disclosure. However, DISTRIBUTOR has no responsibility for safeguarding any information that it can document in writing (i) is in the public domain through no fault of its own, (ii) was properly known to it, without restriction, prior to disclosure by AUNT MILLIE'S, (iii) was properly disclosed to it, without restriction, by another person with the legal authority to do so, (iv) is independently developed by DISTRIBUTOR without use or reference to AUNT MILLIE'S proprietary information or (v) is required to be disclosed pursuant to a
judicial or legislative order or proceeding; provided that, to the extent permitted by and practical under the circumstances, DISTRIBUTOR provides to AUNT MILLIE'S prior notice of the intended disclosure and an opportunity to respond or object to the disclosure or if prior notice is not permitted or practical under the circumstances, prompt notice of such disclosure.
§6.2 INJUNCTIVE RELIEF. In the event of actual or threatened breach of the provisions of this Article 6, AUNT MILLIE'S will be entitled to immediate injunctive and other equitable relief, without bond and without the necessity of showing actual damage.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 31)
What This Means (2025 FDD)
According to Aunt Millie's Bakeries' 2025 Franchise Disclosure Document, the company considers certain information regarding its business as confidential and proprietary. As a distributor, you may gain access to information not available to the general public, which Aunt Millie's Bakeries considers valuable trade secrets. This includes, but is not limited to, their methods, techniques, and business strategies.
As a franchisee, you are obligated to use this confidential information solely in accordance with the distribution agreement. You are prohibited from disclosing this information, directly or indirectly, to any third party without prior written consent from Aunt Millie's Bakeries. You must exercise due care in protecting this information from unauthorized use and disclosure, which means taking reasonable steps to prevent leaks or breaches of confidentiality.
However, there are exceptions to this confidentiality obligation. You are not responsible for safeguarding information that (i) is already in the public domain through no fault of your own, (ii) was properly known to you without restriction prior to disclosure by Aunt Millie's Bakeries, (iii) was properly disclosed to you without restriction by another person with the legal authority to do so, (iv) is independently developed by you without use or reference to Aunt Millie's Bakeries' proprietary information, or (v) is required to be disclosed pursuant to a judicial or legislative order or proceeding. In the event of a required disclosure, you must provide prior notice to Aunt Millie's Bakeries, if practical, to allow them to respond or object to the disclosure.
Aunt Millie's Bakeries can seek immediate injunctive and other equitable relief, without bond or proof of actual damages, if there is a breach or threatened breach of the confidentiality provisions. This means that Aunt Millie's Bakeries can take legal action to prevent or stop the disclosure of confidential information, even if they have not yet suffered any financial harm. This underscores the importance of maintaining the confidentiality of Aunt Millie's Bakeries' proprietary information.