What is the definition of 'Confidential Information' in the context of the Aw franchise agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
illed and complied with all the terms of this Agreement. Your indemnification obligations described above will continue in full force and effect after, and notwithstanding, the expiration or termination of this Agreement.
9. CONFIDENTIAL INFORMATION; NON-COMPETITION
9.1 Types of Confidential Information. We possess certain unique confidential and proprietary information and trade secrets consisting of the following categories of information,
methods, techniques, products, and knowledge developed by us and our franchisees: (4) methods, techniques, formats, specifications, procedures, information, systems and knowledge of and experience in the development, operation, and franchising of Papa Ray's Pizza Restaurants; (2) source of supply, ordering and inventory control and methods of providing the products and services sold at Papa Ray's Pizza Restaurants; (3) recipes and methods for preparation of food products; (4) knowledge of sales and profit performance of any one or more Papa Ray's Pizza Restaurants; (5) knowledge of test programs, concepts or results relating to new services and products; sources of products; (6) advertising, marketing and promotional programs; (7) construction, lay-out, equipping and decoration of Papa Ray's Pizza Restaurants; (8) selection and training of Papa Ray's Pizza Restaurant managers and other personnel; (9) methods of training managers and other employees; and (10) contents of the Operations Manual or other written material provided to you in whatever media. All such information will be referred to in this Agreement as "Confidential Information." We will disclose much of the Confidential Information to you, and will do so in furnishing you prototype plans for build-out of a Papa Ray's Pizza Restaurant, in advising about site selection, in providing training programs, in the list of approved suppliers, in the Operations Manual and in providing guidance and assistance to you under this Agreement.
In addition, in the course of the operation of the Papa Ray's Pizza Restaurant, and for six (6) months after the termination or expiration of this Agreement, you or your employees may develop ideas, inventions, formulas, concepts, methods, techniques or improvements relating to the Papa Ray's Pizza Restaurant, which you agree to disclose to us and which we may then authorize you to use in the operation of the Papa Ray's Pizza Restaurant. You agree that any corresponding intellectual property rights (including without limitation any rights in utility or design patents, know-how, trade secrets, trademarks, services marks and copyrights) in such ideas, inventions, formulas, concepts, methods, techniques or improvements will be our property and the title and rights to which shall be legally assigned to us immediately in writing by you, your Owners, your managers and/or employees. All of such information developed by you or your employees will be included in the term "Confidential Information," as defined above.
9.2 Non-disclosure Agreement. You agree that your relationship with us does not vest in you any interest in the Confidential Information other than the right to use it in the development and operation of Papa Ray's Pizza Restaurants under this Agreement, and that the use or duplication of the Confidential Information in any other business would constitute an unfair method of competition, a breach of this Agreement and copyright infringement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Confidential Information encompasses unique and proprietary information and trade secrets developed by Aw and its franchisees. This includes methods, techniques, formats, specifications, procedures, information, systems, and knowledge related to the development, operation, and franchising of Papa Ray's Pizza Restaurants. It also covers sourcing, ordering, inventory control, recipes, food preparation methods, sales and profit performance data, test program results, product sources, advertising, marketing programs, restaurant construction and layout, personnel selection and training, and the contents of the Operations Manual.
Aw discloses Confidential Information to franchisees through prototype plans, site selection advice, training programs, approved supplier lists, the Operations Manual, and ongoing guidance. Franchisees are obligated to protect this information, agreeing not to use it in any other business, maintain its confidentiality, avoid unauthorized copies, and implement procedures to prevent unauthorized use or disclosure. This includes requiring non-disclosure and non-competition agreements from employees, managers, and owners who have access to the Confidential Information.
The franchise agreement specifies that any ideas, inventions, formulas, concepts, methods, techniques, or improvements developed by the franchisee or their employees during the term of the agreement, or for six months after termination, relating to Papa Ray's Pizza Restaurant, also become part of the Confidential Information. These intellectual property rights, including patents, trade secrets, trademarks, and copyrights, are assigned to Aw.
However, the restrictions on disclosure and use of Confidential Information do not apply to information generally known and used in the food and restaurant industry, provided its availability is not due to the franchisee's disclosure. Additionally, disclosure is permitted in legal proceedings if legally required, provided Aw has the opportunity to obtain a protective order to ensure confidentiality. This ensures that franchisees are not unduly restricted from using commonly known industry practices while still protecting Aw's proprietary information.