To whom is the Bananas Smoothies Frozen Yogurt franchisee prohibited from disclosing the System?
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 franchisee (referred to as "Confidants") must keep the System confidential and is prohibited from disclosing it to any person, entity, firm, or corporation. The System includes 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.
Bananas Smoothies Frozen Yogurt considers the System to be a trade secret that provides a substantial competitive advantage. This means franchisees are legally obligated to protect this information and prevent it from being accessed by competitors or unauthorized parties.
This restriction is typical in franchising, as franchisors like Bananas Smoothies Frozen Yogurt need to protect their proprietary information to maintain a competitive edge and the uniformity of their brand. Franchisees should understand that violating this confidentiality clause could result in legal action from the franchisor.