Is a Beauty Bungalows franchisee bound by the standards for maintaining the privacy of the Manual?

According to Beauty Bungalows's 2025 Franchise Disclosure Document, a franchisee is indeed bound by the standards for maintaining the privacy of the Manual. The Manual, along with other confidential information, is considered proprietary and involves trade secrets of Beauty Bungalows. As such, it is disclosed to the franchisee with the express condition that they agree to adhere strictly to all security procedures prescribed in writing by Beauty Bungalows for maintaining the confidentiality of this information.

This obligation includes disclosing the information to employees only to the extent necessary for the operation of the business, not using the information in any other business without written authorization from Beauty Bungalows, and exercising the highest degree of diligence to maintain absolute confidentiality both during and after the term of the Franchise Agreement. Franchisees must also follow Beauty Bungalows's security procedures, which may include executing approved nondisclosure agreements and intranet, extranet, and Internet usage agreements.

Furthermore, franchisees must not copy or reproduce any confidential information and must establish procedures to prevent unauthorized use by any other person. Any unauthorized use of the Manual or the System constitutes a breach of the Franchise Agreement and an infringement of Beauty Bungalows's proprietary rights. Franchisees are also required to promptly report any unauthorized use of the Manual or other confidential information, reinforcing the importance of maintaining its privacy and security.