factual

What is the Bang Cookies franchisee's obligation regarding Confidential Information upon termination?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

ranty in the form attached to this Agreement as Exhibit 1; and (b) Franchisee's directors, officers, employees and agents where disclosure of the Know-How was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality Agreement in the form attached as Exhibit 2.

6.C. RESTRICTIVE COVENANTS: CONFIDENTIAL INFORMATION

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 Confidential Information in any business or capacity other than the Bang Cookies Shop operated by Franchisee; (b) shall maintain the confidentiality of the Confidential Information at all times; (c) shall not make unauthorized copies of documents containing any Confidential Information; (d) shall take such reasonable steps as Franchisor may ask of Franchisee from time to time to prevent unauthorized use or disclosure of the Confidential Information; and (e) shall stop using the Confidential Information immediately upon the expiration, termination or Transfer of this Agreement. Franchisee agrees that the foregoing covenants and obligations shall also apply to: (a) Franchisee's Owners and Spouses and that Franchisee's Owners and Spouses shall each execute and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1; and (b) Franchisee's directors, officers, employees and agents where disclosure of the Confidential Information was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality Agreement in the form attached as Exhibit 2.

6.D. RESTRICTIVE COVENANTS: UNFAIR COMPETITION AND IN-TERM NON-COMPETITION OBLIGATIONS

Franchisee agrees that during the Term of this Agreement, Franchisee shall not engage in the following activities (the "Prohibited Activities"): (a) owning and/or having any legal or equitable interest whether, as an individual proprietor, owner, partner, member or shareholder of a Corporate Entity, or, in any similar capacity, in a Competitive Business other than, owning an interest of 3% or less in a publicly traded company that is a Competitive Business; (b) operating, managing, funding and/or performing services whether, as an employee, officer, director, manager, consultant, representative, agent, and/or creditor or, in any similar capacity, for or benefitting a Competitive Business; (c) diverting or attempting to divert any business or customers from Franchisor or, one of Franchisor's affiliates or franchisees; (d) inducing any customer or client of Franchisor, Franchisor's affiliates, franchisees of the System, or, of Franchisee, to any other person or business that is not a Bang Cookies Shop; and/or (e) engaging in any actions, inactions, and/or activities in violation of Articles 6.B. and/or 6.C. of this Agreement (all, individually and, collectively, referred to as the "Prohibited Activities"). Franchisee agrees that if Franchisee were to engage in the Prohibited Activities that such actions would be unfair, would constitute unfair competition and would cause harm to Franchisor, the System and other Bang Cookies Shop franchisees. Franchisee agrees that the foregoing covenants and obligations shall also apply to Franchisee's Owners and Spouses and that Franchisee's Owners and Spouses shall each execute and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1.

**6.E.

Source: Item 23 — RECEIPTS (FDD pages 56–245)

What This Means (2024 FDD)

According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees have specific obligations regarding confidential information both during the term of the agreement and after its expiration or termination. Franchisees must not use the confidential information in any business other than their Bang Cookies shop. They are required to maintain the confidentiality of the information at all times and prevent unauthorized copies of documents containing confidential information. Franchisees must also take reasonable steps to prevent unauthorized use or disclosure of the confidential information. Upon termination or transfer of the franchise agreement, the franchisee must immediately stop using the confidential information. These obligations extend not only to the franchisee but also to their owners, spouses, directors, officers, employees, and agents, provided they have signed the necessary agreements.

Upon termination of the Bang Cookies franchise agreement, franchisees must cease operations and protect the system. This includes permanently ceasing to operate as a Bang Cookies franchise and refraining from representing themselves as a current or former franchisee. Franchisees must also stop using the Bang Cookies system, which includes the confidential information, licensed marks, business management system data, and operations manual. They are also prohibited from using any methods, procedures, or techniques associated with the system, as well as system supplies and approved services and products.

Furthermore, the franchisee is obligated to return the operations manual, confidential information (including business management system data and customer lists), and all other confidential materials, equipment, software, and property owned by Bang Cookies. However, the franchisee may retain copies of the franchise agreement, correspondence between the franchisor and franchisee (excluding confidential information), and other documents required by applicable law. These measures ensure the protection of Bang Cookies's proprietary information and system, preventing unfair competition and maintaining the brand's integrity.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.