What constitutes the 'System' that Confidants must hold in confidence for Bananas Smoothies Frozen Yogurt?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidants shall hold in confidence the System, and all parts thereof, and shall not disclose the System, or any part thereof, to any person, entity, firm or corporation.
It is understood and agreed that the System encompasses but is not limited to, a program of accounting, identification, schemes, specifications, standards, management systems, recipes, menus, techniques, financial information (such as product costs and sources of supply), and business operations and procedures that would, if used by other persons, firms or corporations, give such other persons, firms or corporations a substantial competitive advantage that is presently enjoyed by Franchisor, each of which Confidants acknowledge is a trade secret of, and proprietary to, Franchisor and/or its affiliate.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the 'System' that Confidants (which includes franchisees and certain other individuals associated with the franchise) must keep confidential encompasses a wide array of proprietary information and operational procedures. This includes the brand's specific program of accounting, identification schemes, and detailed specifications. It also extends to the standards, management systems, recipes, menus, and techniques used in the Bananas Smoothies Frozen Yogurt business.
Furthermore, the System includes sensitive financial information such as product costs and sources of supply, as well as the business operations and procedures that give Bananas Smoothies Frozen Yogurt a competitive advantage. The FDD explicitly states that this information is considered a trade secret and is proprietary to the franchisor and/or its affiliates.
For a prospective franchisee, this means they are obligated to protect all aspects of Bananas Smoothies Frozen Yogurt's operational methods and business strategies. Disclosing this information could lead to a substantial competitive disadvantage for the franchisor and other franchisees. The franchisee also has to ensure that anyone actively involved in managing the restaurant signs a Confidentiality and Non-Competition Agreement.