What is a Bang Cookies franchisee prohibited from doing with the Know-How?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
access to the operations manual and Confidential Information. Franchisee agrees that competition by Franchisee, Owners, Spouses and/or Immediate Family Members could jeopardize the entire System and cause irreparable harm to Franchisor and franchisees of Bang Cookies Shops. Accordingly, Franchisee and Franchisee's Owners and Spouses agree to comply with the restrictive covenants set forth in this Article 6 and throughout this Agreement.
6.B. RESTRICTIVE COVENANTS: KNOW-HOW
Franchisee agrees that, at all times, both during the Term of this Agreement and after its expiration or termination, Franchisee: (a) shall not use the Know-How in any business or capacity other than the operation of the Franchised Business pursuant to this Agreement and as instructed by Franchisor; (b) shall maintain the confidentiality of the Know-How at all times; (c) shall not make unauthorized copies of documents containing any Know-How; (d) shall take all reasonable steps that Franchisor requires from time
to time to prevent unauthorized use or disclosure of the Know-How; and (e) shall stop using the Know-How immediately upon the expiration, termination or Transfer of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, franchisees are restricted in their use of the Know-How both during the term of the agreement and after its expiration or termination. Specifically, a franchisee cannot use the Know-How in any business or capacity other than operating the franchised Bang Cookies business as instructed by the franchisor.
This restriction means a franchisee must not apply Bang Cookies' trade secrets and proprietary information to any other venture, ensuring that the brand's competitive edge is protected. The franchisee is also obligated to maintain the confidentiality of the Know-How at all times and prevent unauthorized copies of documents containing this information.
Furthermore, the franchisee must take reasonable steps to prevent unauthorized use or disclosure of the Know-How, adhering to any measures the franchisor may require. Upon termination or transfer of the franchise agreement, the franchisee must immediately cease using the Know-How altogether. These obligations extend not only to the franchisee but also to their owners, spouses, directors, officers, employees, and agents who have access to the Know-How, reinforcing the importance of safeguarding Bang Cookies' proprietary information.