Does the confidentiality agreement for Bananas Smoothies Frozen Yogurt specify any exceptions to the confidentiality obligations?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidants accordingly agree that they shall not, at any time during the term of this Agreement or after termination, expiration or non-renewal of this Agreement, without Franchisor's prior written consent, disclose (except to such employees or agents as must have access to such information in order to construct or operate the restaurant) or use, or permit the use of, the System or any part thereof, except as may be required by applicable law or as authorized by this Agreement.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 FDD, the confidentiality agreement for Bananas Smoothies Frozen Yogurt includes specific exceptions. Franchisees, referred to as "Confidants," are restricted from disclosing or using the System or any part of it without prior written consent from Bananas Smoothies Frozen Yogurt. However, there are two explicit exceptions to this rule.
First, disclosure is permitted to employees or agents who require access to the confidential information to construct or operate the restaurant. This allows the franchisee to share necessary information with their staff for the day-to-day functioning of the business. Second, disclosure or use of confidential information is allowed if required by applicable law or authorized by the Franchise Agreement itself. This covers situations where legal obligations mandate the release of information or where the agreement specifically permits certain uses.
These exceptions provide some flexibility for the Bananas Smoothies Frozen Yogurt franchisee while still protecting the franchisor's confidential information and trade secrets. The franchisee must ensure that any disclosure to employees or agents is limited to what is necessary and that they are aware of their own confidentiality obligations. Additionally, any legally required disclosures should be carefully reviewed to ensure compliance with both the law and the franchise agreement.