Under what circumstances must I stop using Beard Papas Confidential Information?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4. Protection of the Confidential Information. You agree that: (i) you will not use the Confidential Information in any business or capacity other than the Beard Papa's Shop; (ii) you will maintain the confidentiality of the Confidential Information at all times; (iii) you will not make unauthorized copies of documents containing the Confidential Information; (iv) you will take such reasonable steps as the we may ask of you from time to time to prevent unauthorized use or disclosure of the Confidential Information; and (v) you will stop using the Confidential Information immediately at our request or demand.
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (3) Permanently cease to use, in any manner: (a) the System including, without limitation, the Confidential Information, the Licensed Marks, the Business Management System Data, and the Operations Manual; (b) any methods, procedures, or techniques associated with the System in which Franchisor possesses proprietary rights or that constitute Franchisor's trade secrets; (c) System Supplies, including communicating with or ordering products from Franchisor's designated suppliers and vendors of System Supplies; (d) the Approved Services and Products; and (e) any other advertising, marketing, media, and any other information, documents or things associated with Franchisor, the System, the Licensed Marks, Beard Papa's Shops, the Franchised Business, and Franchisee's former Beard Papa's Shop, including, without limitation, any confidential, proprietary methods, procedures, descriptions of products, techniques, trade secrets, recipes, proprietary marks, distinctive forms, slogans, symbols, signs, stationary, advertising material, articles, logos, devices, items and all other things, tangible or intangible, associated with Franchisor, the System, the Licensed Marks, and Beard Papa's Shops;
- (4) Return to Franchisor the Operations Manual (including any and all parts, supplements, and copies of the Operations Manual), the Confidential Information (including without limitation the Business Management System Data and all customer lists and information), and all other confidential materials, equipment, software, information, and property owned by Franchisor and all copies thereof provided, however, that Franchisee may retain Franchisee's copies of this
Agreement, correspondence between Franchisor and Franchisee, but not including Confidential Information that may be contained in or attached thereto, and other documents that Franchisee needs to retain pursuant to applicable law;
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, franchisees must cease using Confidential Information under specific circumstances related to the franchise agreement. Franchisees must immediately stop using Confidential Information if Beard Papas requests or demands it. Additionally, upon the expiration, termination, or transfer of the Franchise Agreement for any reason, the franchisee must permanently cease using the Confidential Information. This includes the System, Licensed Marks, Business Management System Data, and Operations Manual.
This obligation extends to any methods, procedures, or techniques associated with the Beard Papas system in which the franchisor possesses proprietary rights or that constitute trade secrets. Franchisees are also prohibited from using System Supplies, Approved Services and Products, and any other advertising, marketing, or media associated with Beard Papas. This encompasses all confidential and proprietary methods, procedures, product descriptions, techniques, trade secrets, recipes, proprietary marks, distinctive forms, slogans, symbols, signs, and other tangible or intangible items related to the franchise.
Furthermore, upon termination of the agreement, franchisees are required 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 Beard Papas. While franchisees can retain copies of the Franchise Agreement and correspondence, they cannot keep any Confidential Information contained within those documents, except for documents they need to retain to comply with applicable laws. These restrictions ensure the protection of Beard Papas' proprietary information and system.