Does 'Confidential Information' for Bang Cookies include specifications for suppliers of supplies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
"Confidential Information" refers to and means all of our and/or our affiliates trade secrets, methods, standards, techniques, procedures, data and information, as same may exist as of the Effective Date and as same may be developed, modified and supplemented in the future, constituting and comprising: (a) methods, specifications, standards, policies, procedures, information, concepts, programs and systems relating to the development, establishment, marketing, promotion and operation of Bang Cookies
Shops; (b) information concerning consumer preferences for services, products, materials and supplies used or sold by Bang Cookies Shops, and specifications for and knowledge of suppliers of inventory, equipment, products, supplies and procedures used or sold by Bang Cookies Shops; (c) information concerning customers, customer lists, email lists, database lists, product sales, operating results, financial performance and other financial data of Bang Cookies Shops; (d) Business Management System Data; (e) current and future information contained in the operations manual; and (f) Know-How.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, Confidential Information includes specifications for suppliers. The FDD defines confidential information, in part, as information concerning consumer preferences, specifications for, and knowledge of suppliers. This extends to inventory, equipment, products, supplies, and procedures used or sold by Bang Cookies Shops.
For a prospective Bang Cookies franchisee, this means that the franchisor considers information about its suppliers to be highly sensitive and proprietary. This includes not only who the suppliers are, but also the specific requirements and standards Bang Cookies sets for the inventory, equipment, products, and supplies they provide.
The franchisee is obligated to protect this information and cannot disclose it to unauthorized parties. This confidentiality extends not only to the suppliers themselves but also to the specifications and knowledge related to those suppliers. This is a fairly standard practice in franchising, as protecting supplier relationships and supply chain information is crucial for maintaining consistency and quality across all franchise locations.