Is the confidentiality agreement for Bananas Smoothies Frozen Yogurt limited to written information only?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
We will disclose certain Confidential Information to Developer through various manuals and in providing training, guidance and assistance to you from time to time.
7.2 Nondisclosure Agreement. Developer acknowledges and agrees that:
- (a) Developer will not acquire any interest in the Confidential Information, other than the right to utilize it in the development and operation of EYB Concepts under the Franchise Agreements during the term of this Agreement, and that the duplication or use of the Confidential Information in any other business would constitute an unfair method of competition; and
- (b) the Confidential Information is proprietary, may involve our trade secrets and is disclosed to you solely on the condition that you agree that Developer:
- (i) will not use the Confidential Information in any other business or capacity;
- (ii) will maintain the absolute confidentiality of the Confidential Information during and after the term of this Agreement;
(iii) will not make unauthorized copies of any portion of the Confidential Information disclosed via electronic medium, in written form or in other tangible form, including, for example, the Manuals; and
(iv) will adopt and implement all reasonable procedures that we prescribe from time to time to prevent unauthorized use or disclosure of the Confidential Information including, restrictions on disclosure to your employees and the use of nondisclosure and noncompetition agreements Franchisor may prescribe for employees or others who have access to the Confidential Information.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the confidentiality agreement extends beyond just written information. It covers Confidential Information disclosed via electronic medium, in written form, or in other tangible forms, including manuals. This means franchisees must protect confidential information regardless of how it's communicated, whether it's through digital documents, physical papers, or other physical items.
The agreement requires franchisees to maintain absolute confidentiality during and after the term of the Franchise Agreement. They cannot use the Confidential Information in any other business or capacity. Furthermore, franchisees must implement reasonable procedures to prevent unauthorized use or disclosure, including imposing restrictions on their employees and using non-disclosure agreements.
Bananas Smoothies Frozen Yogurt designates a wide array of information as confidential, including the System and know-how, plans, specifications, site selection criteria, equipment sources, marketing programs, staffing methods, software, recipes, and financial performance data. This broad definition means franchisees must be vigilant in protecting a wide range of business-related information. The agreement also specifies that unauthorized use or disclosure of confidential information and trade secrets will cause incalculable and irreparable injury to Bananas Smoothies Frozen Yogurt and its affiliates.