Can a Bananas Smoothies Frozen Yogurt franchisee disclose the System to any third party?
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, franchisees are prohibited from disclosing the System to any third party. The FDD states that franchisees, referred to as "Confidants," must maintain the confidentiality of the System and all its components.
The System encompasses various elements, including accounting methods, identification schemes, specifications, standards, management systems, recipes, menus, techniques, financial information like product costs and supply sources, and business operations and procedures. Bananas Smoothies Frozen Yogurt considers these elements trade secrets that provide a substantial competitive advantage.
This restriction means that a prospective Bananas Smoothies Frozen Yogurt franchisee cannot share operational details, recipes, or any other proprietary information about the franchise with anyone outside of the franchise organization. This is a standard practice in franchising to protect the brand's competitive edge and maintain uniformity across all franchise locations.