When investigating an Auntie Annes franchise, what is the permitted use of the Confidential Information provided?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
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- The undersigned agrees to use the Confidential Information (as defined below) to which he/she is exposed only in connection with the undersigned's investigation of an Auntie Anne's franchise and for no other purpose.
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- The undersigned agrees to maintain the Confidential Information in strictest confidence and not to copy, reproduce or otherwise transmit the Confidential Information without the Franchisor's prior written consent, which may be denied in the Franchisor's sole discretion.
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- The undersigned may not disclose or disseminate the Confidential Information to any third party without the Franchisor's prior written consent, except the undersigned may share the Confidential Information with his/her financial and legal advisors on a need to know basis only and only if such advisors agree to be bound by the terms and conditions of this Agreement.
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- At the Franchisor's request, upon the undersigned's completion of his/her investigation of an Auntie Anne's franchise, the undersigned agrees to return to the Franchisor all Confidential Information received by the undersigned or to otherwise dispose of it in accordance with the Franchisor's instructions.
For purposes of this Agreement, "Confidential Information" shall mean all financial, business, market and operating information of any kind to relating to the Auntie Anne's franchise program or the operation of an Auntie Anne's franchise, all recipe ingredients, operational methods and processes, shop layouts, equipment specifications, list of suppliers and vendors, financial information pertaining to the Franchisor, shop design criteria, shop location criteria, blueprints, operational and financial standards, and all related matters regarding Auntie Anne's businesses, whether communicated in writing or orally. "Confidential Information" does not include data, material or information: (i) which is known to the undersigned at the time of disclosure as demonstrated by the undersigned's files and records; (ii) becomes known to the undersigned from another source without confidentiality restrictions; or (iii) is or becomes part of the public domain through no act or omission by the undersigned.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, any confidential information that a prospective franchisee is exposed to during their investigation of an Auntie Anne's franchise can only be used in connection with that investigation. The prospective franchisee agrees to keep the confidential information private and not copy, reproduce, or transmit it without prior written consent from Auntie Annes.
The document specifies that the prospective franchisee cannot share or spread the confidential information to any third party without Auntie Annes's permission. However, the prospective franchisee can share the confidential information with their financial and legal advisors if those advisors need to know the information and agree to the terms and conditions of the agreement.
Upon completing the investigation of an Auntie Anne's franchise, the prospective franchisee must return all confidential information to Auntie Annes or dispose of it as instructed by Auntie Annes. Confidential information includes financial, business, market, and operating information related to the Auntie Anne's franchise program, recipes, operational methods, shop layouts, equipment specifications, supplier lists, financial information about Auntie Annes, shop design criteria, location criteria, blueprints, and operational and financial standards. Information already known to the franchisee, obtained from another source without restrictions, or in the public domain is excluded from being considered confidential.