Is the B Bops franchisee required to maintain confidentiality with respect to the 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, franchisees are required to maintain confidentiality. The franchise agreement specifies that confidential information is disclosed to the franchisee solely on the condition that the franchisee agrees to maintain confidentiality with respect to such information. They must not directly or indirectly divulge, disclose, or otherwise communicate any of this information to any person or entity.
This obligation extends to preventing unauthorized use or disclosure of confidential information, including not making, using, or retaining unauthorized copies of any written confidential information. Franchisees must also implement reasonable procedures prescribed by B Bops to prevent unauthorized use or disclosure, including requiring managerial employees to execute nondisclosure and noncompete covenants as a condition of employment.
The confidentiality obligations survive the termination or expiration of the Franchise Agreement, meaning that even after the franchise relationship ends, the franchisee must continue to protect B Bops's confidential information. This is a standard practice in franchising to protect the franchisor's proprietary information and trade secrets.