What is the Bananas Smoothies Frozen Yogurt franchisee prohibited from doing regarding 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, franchisees are prohibited from disclosing the System, or any part of it, to any person, entity, firm, or corporation. The franchisee must hold the System and all its components in confidence.
The System encompasses a wide array of elements, including accounting programs, identification schemes, specifications, standards, management systems, recipes, menus, techniques, financial information like product costs and supply sources, and overall business operations and procedures. Bananas Smoothies Frozen Yogurt considers all these elements trade secrets and proprietary information.
This restriction is in place because the System provides Bananas Smoothies Frozen Yogurt with a substantial competitive advantage. Unauthorized disclosure and use by others could harm the brand's market position. This confidentiality clause is a standard practice in franchising to protect the franchisor's intellectual property and operational methods.