factual

To what extent can a Beauty Bungalows franchisee disclose Confidential Information to its employees?

Beauty_Bungalows Franchise · 2025 FDD

Answer from 2025 FDD Document

orefront sign at Franchisor's request within five (5) years immediately preceding the expiration of initial term of this Agreement.

7. MANUAL AND CONFIDENTIAL INFORMATION

  • 7.01 Confidential Information. The System, the Manual, and other Confidential Information are proprietary, involve Trade Secrets of Franchisor, and are disclosed to Franchisee solely on the express condition that Franchisee agrees, and Franchisee does hereby agree to: fully and strictly adhere to all security procedures prescribed in writing by Franchisor, in its sole discretion, for maintaining the Confidential Information as confidential, including without limitation, the obligation to;

    • (a) disclose such information to its employees only to the extent necessary to market and for the operation of the Business in accordance with this Agreement;
    • (b) not use any such information in any other business or in any manner not specifically authorized or approved in writing by Franchisor; and
    • (c) exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all such information during and after the term of this Agreement, and follow Franchisor's security procedures, which include the execution of approved nondisclosure agreements, and intranet, extranet and Internet usage agreements when developed by Franchisor, by Franchisee and any employee or agent who is allowed access.
  • 7.02 Standards and Authorized Use. Franchisee must maintain strict compliance with the Manual as presently set forth and as subsequently amended and revised.

  • 7.03 Unauthorized Use. Franchisee must not copy or otherwise reproduce any Confidential Information and must establish procedures to prevent unauthorized use by any other person. Unauthorized use of the Manual or the System will constitute a breach of this Agreement and an infringement of our proprietary rights, including trade secrets and copyrights. Franchisee must promptly report any unauthorized use of the Manual or other Confidential Information.

  • 7.04 Manual. Franchisor will loan to Franchisee during the term of the franchise one (1) copy of Franchisor's confidential operating Manual, which may be in print, on an access code-protected company intranet or extranet, or through other media. Franchisee agrees to keep the Manual at its own risk and maintain and keep the Manual in good condition. Franchisor reserves the right to require Franchisee to use the Manual in only an electronic format.

Source: Item 22 — CONTRACTS (FDD pages 47–48)

What This Means (2025 FDD)

According to Beauty Bungalows' 2025 Franchise Disclosure Document, a franchisee can disclose confidential information to its employees only to the extent necessary for marketing and operating the business in accordance with the franchise agreement. The franchisee must adhere strictly to all security procedures prescribed by Beauty Bungalows for maintaining the confidentiality of the information.

The franchisee is prohibited from using confidential information in any other business or manner not specifically authorized by Beauty Bungalows in writing. They must also exercise the highest degree of diligence to maintain the absolute confidentiality of all such information both during and after the term of the franchise agreement. This includes following Beauty Bungalows' security procedures, such as executing approved nondisclosure agreements and intranet, extranet, and Internet usage agreements when developed by Beauty Bungalows, by the franchisee and any employee or agent who is allowed access.

Before any employee performs work or has access to Beauty Bungalows' confidential information, they must execute Beauty Bungalows' standard Nondisclosure and Noncompetition Agreement. The franchisee must deliver a copy of all signed agreements to Beauty Bungalows within one week of their execution. The franchisee is responsible for ensuring that their manager, employees, and contractors do not disclose any of Beauty Bungalows' confidential information. If an employee or contractor wishes to attend a training presented by Beauty Bungalows, Beauty Bungalows may require them to sign a nondisclosure and non-compete agreement directly with Beauty Bungalows.

Disclaimer: This information is extracted from the 2025 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.