What will Bang Cookies do if a franchisee notifies them of unauthorized use of the Manuals?

According to Bang Cookies' 2024 Franchise Disclosure Document, if a franchisee becomes aware of a breach of the Confidentiality Agreement, they must take certain actions. Specifically, the franchisee must (1) immediately notify Bang Cookies of any known breach of the Confidentiality Agreement by any person or entity; (2) immediately notify Bang Cookies of facts and information that would cause a reasonable person to believe that a person or entity violated the Confidentiality Agreement and/or is in the process of violating the Confidentiality Agreement; and (3) take reasonable steps including notice to Bang Cookies and the franchisee's consultation with their legal counsel.

This means that a Bang Cookies franchisee has a responsibility to inform Bang Cookies if they suspect or know that someone is misusing the operations manual or other confidential information. This obligation extends not only to confirmed breaches but also to situations where there is a reasonable basis to believe a breach is occurring or is about to occur.

The franchisee is also expected to take reasonable steps to address the situation, which includes informing Bang Cookies and consulting with their own legal counsel. This requirement highlights the importance Bang Cookies places on protecting its confidential information and the steps franchisees must take to uphold this protection. Failure to comply with these notification requirements could potentially lead to consequences for the franchisee under the terms of the franchise agreement.