What are my obligations regarding the confidentiality of Beard Papas' Confidential Information?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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 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 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 Beard Papa's 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
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, franchisees have specific obligations regarding the confidentiality of information related to the Beard Papas business. Franchisees must not use Confidential Information in any business or capacity other than the operation of their Beard Papas shop, as instructed by Beard Papas. Franchisees are obligated to maintain the confidentiality of the Know-How at all times and must not make unauthorized copies of any documents containing Know-How. They must also take all reasonable steps required by Beard Papas to prevent unauthorized use or disclosure of the Know-How. Upon expiration, termination, or transfer of the Franchise Agreement, the franchisee must immediately stop using the Know-How. These obligations extend both during the term of the agreement and after its expiration or termination.
Confidential Information includes, but is not limited to, methods, specifications, recipes, standards, policies, procedures, information, concepts, programs, and systems relating to the development, establishment, marketing, promotion, and operation of Beard Papa's Shops. It also encompasses information concerning consumer preferences, knowledge of suppliers, customer lists, email lists, database lists, product sales, operating results, financial performance, and other financial data of Beard Papa's Shops. Additionally, it includes customer lists and information related to Beard Papa's Shops and the Franchised Business, Business Management System Data, recipes, current and future information contained in the Operations Manual, and Know-How.
Beard Papas requires that these confidentiality obligations also apply to the franchisee's owners and spouses, who must execute and deliver an Owner and Spouse Agreement and Guaranty. Furthermore, these obligations extend to the franchisee's directors, officers, employees, and agents if disclosure of the Know-How was necessary for the operations of the Franchised Business and if they previously executed and delivered a Confidentiality Agreement. Franchisees are also required to disclose to Beard Papas all ideas, concepts, methods, and products conceived or developed by the franchisee and their affiliates, owners, agents, and employees relating to the development and operation of Beard Papa's Shops, assigning these to Beard Papas without any obligation for lump sum or ongoing payments.