What sections of the Bananas Smoothies Frozen Yogurt agreement address confidential information?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
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Developer will provide to Franchisor a copy of the organizational and governing documents for the Business Entity(ies) that demonstrates that the Operating Partner has the requisite ownership interest.
6.3 Joint and Several. If two or more persons are at any time the Developer under this Agreement, their obligations to Franchisor are joint and several and the term "Developer" refers to all of them.
7. CONFIDENTIAL INFORMATION/EXCLUSIVE RELATIONSHIP.
- 7.1 Types of Confidential Information. Franchisor possesses certain confidential information relating to the development and operation of EYB Concepts, which includes but is not limited to the following (collectively, the "Confidential Information"):
- (a) the System and the know-how related to its use;
- (b) plans, specifications, size and physical characteristics of EYB Concepts;
- (c) site selection criteria, land use and zoning techniques and criteria;
- (d) sources, design and methods of use of equipment, furniture, forms, materials, supplies, Internet or Intranet, "business to business" or "business to customer" networks or communities and other e-commerce methods of business;
- (e) any marketing (including but not limited to websites, online advertising, social media marketing and sponsorships), advertising and promotional programs for EYB Concepts;
- (f) staffing and delivery methods and techniques for personal services;
- (g) the selection, testing and training of managers and other employees for EYB Concepts;
- (h) the recruitment, qualification and investigation methods to secure employment for employment candidates;
- (i) the approved Computer software we make available or recommend for EYB Concepts;
- (j) methods, techniques, formats, specifications, procedures, information and systems related to and knowledge of and experience in the development, operation and franchising of EYB Concepts;
- (k) knowledge of specifications for and identities of and suppliers of certain products, materials, supplies, furniture, furnishings and equipment;
- (l) recipes, formulas, preparation methods and serving techniques; and
- (m) knowledge of operating results and financial performance of EYB Concepts other than those operated by you (or your affiliates);
- (n) pricing, purchase agreements and contracts.
We will disclose certain Confidential Information to Developer through various manuals and in providing training, guidance and assistance to you from time to time.
7.2 Nondisclosure Agreement. Developer acknowledges and agrees that:
- (a) Developer will not acquire any interest in the Confidential Information, other than the right to utilize it in the development and operation of EYB Concepts under the Franchise Agreements during the term of this Agreement, and that the duplication or use of the Confidential Information in any other business would constitute an unfair method of competition; and
- (b) the Confidential Information is proprietary, may involve our trade secrets and is disclosed to you solely on the condition that you agree that Developer:
- (i) will not use the Confidential Information in any other business or capacity;
- (ii) will maintain the absolute confidentiality of the Confidential Information during and after the term of this Agreement;
- (iii) will not make unauthorized copies of any portion of the Confidential Information disclosed via electronic medium, in written form or in other tangible form, including, for example, the Manuals; and
- (iv) will adopt and implement all reasonable procedures that we prescribe from time to time to prevent unauthorized use or disclosure of the Confidential Information including, restrictions on disclosure to your employees and the use of nondisclosure and noncompetition agreements Franchisor may prescribe for employees or others who have access to the Confidential Information.
- 7.3 Competitive Restrictions. Developer agrees and acknowledges that Franchisor would be unable to protect the Confidential Information against unauthorized use or disclosure and would be unable to encourage a free exchange of ideas and information among EYB Concepts if owners of franchised EYB Concepts were permitted to hold any interest in any business or facility owning, operating, managing franchising or licensing, any concept featuring, or selling, in whole or in part, the same or similar types of food, beverages, smoothies as our franchised EYB Concepts, including but not limited to Green Leaf's Beyond Great Salads (Pick N Mix and all types of Salads, Wrappers, Paninis), and Bananas Smoothies & Frozen Yogurt (Smoothies, Frosties, Yogurt), and The Market By Villa, including catering service or food service facility as well as franchised EYB Concepts and other goods as any of its menu items (other than an EYB Concept under a franchise agreement with us) (a "Competitive Business"). Developer also acknowledges that Franchisor has entered into this Agreement with Developer in part in consideration of and in reliance on Developer's agreement to deal exclusively with Franchisor.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, Section 7 of the franchise agreement outlines confidential information and the franchisee's obligations regarding it. Section 7.1 defines the types of information considered confidential, including the Bananas Smoothies Frozen Yogurt system, plans, specifications, site selection criteria, marketing programs, staffing methods, software, recipes, operating results, and pricing.
Section 7.2 discusses the nondisclosure agreement, stating that the franchisee acknowledges they won't acquire any interest in the confidential information beyond using it for their Bananas Smoothies Frozen Yogurt franchise. It specifies that franchisees must maintain absolute confidentiality during and after the agreement, not use the information in any other business, avoid unauthorized copies, and implement procedures to prevent unauthorized use or disclosure.
Section 7.3 outlines competitive restrictions, preventing franchisees from engaging in competitive businesses or disclosing confidential information. This includes restrictions on owning or investing in businesses that offer similar products or services to Bananas Smoothies Frozen Yogurt, ensuring the franchisor can protect its confidential information and encourage the exchange of ideas within the franchise system. The agreement emphasizes that unauthorized use or disclosure of confidential information could cause significant harm to Bananas Smoothies Frozen Yogurt.