In the B Bops franchise agreement, what is the franchisee required to do regarding procedures prescribed by the company to prevent unauthorized use or disclosure of confidential information?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
f this Agreement. Franchisee acknowledges and agrees that such confidential information is disclosed to Franchisee solely on the condition that Franchisee agrees that Franchisee: (a) will not use the confidential information in any other business or activity; (b) will comply with the provisions of the noncompete covenant contained herein; (c) will maintain confidentiality with respect to such information and will not, directly or indirectly, divulge, disclose or otherwise communicate to any person or entity any of such information; (d) will not make, use or retain unauthorized copies of any portion of such confidential information that may appear in writing; and (e) will adopt and implement all reasonable procedures prescribed from time to time by Company to prevent unauthorized use of disclosure of such information, including the requirement that managerial employees of Franchisee execute
nondisclosure and noncompete covenants as a condition of employment. The provisions of this Section and the obligation of confidentiality shall survive the termination or expiration of this Agreement.
-
- COVENANT NOT TO COMPETE.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchisee acknowledges that confidential information is disclosed to them solely on the condition that they agree to certain stipulations. These include not using the confidential information in any business or activity other than the B Bops franchise, complying with the noncompete covenant, maintaining confidentiality and not disclosing the information to anyone, and refraining from making, using, or retaining unauthorized copies of confidential information.
Furthermore, the franchisee must adopt and implement all reasonable procedures prescribed by B Bops to prevent unauthorized use or disclosure of confidential information. This includes ensuring that managerial employees execute nondisclosure and noncompete covenants as a condition of their employment. These obligations regarding confidentiality survive the termination or expiration of the franchise agreement.
This means a prospective B Bops franchisee must be diligent in protecting the brand's confidential information, not only for the duration of the franchise agreement but also after it ends. They must also ensure their managerial staff is legally bound to the same standards of confidentiality and non-competition. This is a fairly standard practice in franchising, as franchisors need to protect their proprietary systems and methods.