factual

What is the consequence of disclosing Confidential Information related to Azal Coffee to a third person?

Azal_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

ompany"). The Company operates or is developing an Azal Coffee | | | | franchise under a | | | | Franchise Agreement between the Company and Durar Investment, LLC (the "Franchisor") or of | | | | one of its affiliates or franchisees. | | |

As an employee or trainee of the Company, I acknowledge that in the course of my employment by the Company and my training in the Azal Coffee franchise systems of operation, I will have access to certain Confidential Information, as defined below, about the Company and the Franchisor's methods of establishing, developing, operating and maintaining Azal Coffee Stores that is confidential and not available to the public in general. I understand that the Company and the Franchisor have spent a great deal of time and money developing this Confidential Information and I acknowledge that the Company and the Franchisor's reasonable competitive business interests would be severely and irreparably damaged if the Confidential Information that has been (or may be) revealed to me were to be disclosed to any third person, become available to the public in general, or used by me to compete with the Company or the Franchisor or any of its affiliates or franchisees. I, therefore, agree that the Company and Franchisor have a need to protect the Company's and the Franchisor's valuable Confidential Information and I agree that in consideration of these factors, and in consideration of my employment or continuing employment with the Company and/or by training in the Azal Coffee systems of operation, I promise and agree to be bound by the terms of this Agreement as follows:

  1. I agree not to directly or indirectly disclose to any individual, company, partnership, business, corporation or any other entity ("person") or to use myself, any Confidential Information which I learn during my training and/or employment with the Company, except as necessary in the course of my employment with the Company. I agree that these restrictions will apply while I am in training or am employed by the Company and indefinitely after my training is completed or ends or my employment terminates or ends for any reason.

I agree to, at all times, keep the Confidential Information strictly confidential and to maintain the secrecy of the Confidential Information. In particular, I will, at all times, keep all tangible forms of the Confidential Information that I have been entrusted with in a secure work area and safely locked away when not in use and will ensure that these items do not fall into the hands of unauthorized persons.

I also agree that if my training ceases without my being employed by the Company or my employment with the Company terminates or ends for any reason, I will immediately return to the Company or the Franchisor, all memoranda, notes, and other written, digital, electronic, or printed information that is in my possession or under my control, which contains Confidential Information, including information, which although not confidential, belongs to the Company or the Franchisor or relates to its business or systems of the Company or the Franchisor. This obligation will apply regardless of whether the information was prepared by me, the Company, the Franchisor, or a third party.

The term "Confidential Information" includes, but is not limited to: (i) "proprietary information," which includes, but is not limited to, knowledge and experience relating to Azal Coffee Stores;

Source: Item 23 — RECEIPTS (FDD pages 51–204)

What This Means (2024 FDD)

According to Azal Coffee's 2024 Franchise Disclosure Document, disclosing confidential information to a third person can result in significant repercussions. The document emphasizes that Azal Coffee and the Franchisor have invested considerable resources in developing confidential information, and its disclosure would cause severe and irreparable damage to their competitive business interests. This acknowledgment highlights the critical importance of protecting proprietary information within the Azal Coffee franchise system.

To prevent unauthorized disclosure, employees and trainees agree not to directly or indirectly reveal confidential information to any individual or entity, except when necessary for their job duties. This restriction applies both during their training or employment and indefinitely after its termination. This indefinite restriction underscores the long-term commitment to maintaining the secrecy of Azal Coffee's confidential information.

If an individual breaches this agreement by disclosing confidential information, Azal Coffee and the Franchisor are entitled to seek an injunction. This legal measure would restrain the individual from further violations of the agreement. Additionally, the breaching party may be liable for all costs and expenses, including actual attorneys' fees, incurred in enforcing the agreement. These remedies are cumulative, meaning Azal Coffee can pursue multiple avenues for recourse, reinforcing the seriousness with which they treat breaches of confidentiality.

Disclaimer: This information is extracted from the 2024 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.