What is the required action regarding holding information designated as confidential by Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
oped by Franchisor from time to time (the "System").
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- As an employee of Franchisee, I will receive valuable confidential information, disclosure of which would be detrimental to Franchisor and Franchisee, such as information relating to the Manual, recipes, ingredients, cooking procedures, customer lists, drawings, materials, or equipment of Franchisor and the System related to the establishment and operation of Beggars Pizza® restaurants, which are beyond the present skills and experience possessed by me (the "Confidential Information"). This list of confidential matters is illustrative only and does not include all matters considered confidential by Franchisor and Franchisee.
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- I will hold in strict confidence all information designated by Franchisor or Franchisee as confidential. Unless Franchisor otherwise agrees in writing, I will disclose and/or use Confidential Information only in connection with my duties as an employee of Franchisee. My undertaking not to disclose Confidential Information is a condition of my position with Franchisee, and continues even after I cease to be in that position. Notwithstanding the foregoing, nothing in this Agreement prohibits me from disclosing confidential information of Franchisee and Franchisor directly to a federal or state regulatory agency, law enforcement authority, or legislative body to the extent necessary to report potential violations of applicable law or assist in governmental investigative, enforcement, or oversight efforts.
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- While in my position with Franchisee, I will not do anything that may injure Franchisee or Franchisor, such as (a) divert or attempt to divert any present or prospective business or customer of any Beggars Pizza® restaurant to any competitor, by direct or indirect inducement or otherwise; or (b) directly or indirectly perform any other act injurious or prejudicial to the goodwill associated with Franchisor's marks and the System.
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- While in my position with Franchisee and for two (2) years after I cease to be in my position with Franchisee, I will not own, maintain, operate, engage in, be employed by, provide any assistance or advise to, or have any interest in (as owner or otherwise) any business that
(a) offers or sells pizza, pizza products, Italian-style food, or other food items that are the same as or similar to the products being offered by Beggars Pizza® restaurants under the System, and (b) is, or is intended to be, located at or within (i) Franchisee's Territory as defined in Franchisee's franchise agreement with Franchisor (the "Franchise Agreement"), the boundaries of which I acknowledge have been described to me, (ii) a radius of ten (10) miles from the premises of Franchisee's Beggars Pizza® restaurant, or (iii) a radius of ten (10) miles of any business operating under Franchisor's marks.
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- Franchisor is a third-party beneficiary of the Agreement and may enforce it solely and/or jointly with Franchisee.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 36–39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, as an employee of a Beggars Pizza franchisee, you must hold in strict confidence all information designated as confidential by Beggars Pizza or the franchisee. This includes, but is not limited to, information relating to the manual, recipes, ingredients, cooking procedures, customer lists, drawings, materials, or equipment of Beggars Pizza and the system related to the establishment and operation of Beggars Pizza restaurants. Unless Beggars Pizza agrees otherwise in writing, you can only disclose or use confidential information in connection with your duties as an employee of the franchisee.
This obligation to maintain confidentiality is a condition of employment and continues even after you are no longer employed by the franchisee. However, you are not prohibited from disclosing confidential information of the franchisee and Beggars Pizza directly to a federal or state regulatory agency, law enforcement authority, or legislative body to the extent necessary to report potential violations of applicable law or assist in governmental investigative, enforcement, or oversight efforts.
While employed and for two years after leaving employment with the franchisee, you cannot engage in activities that may harm the franchisee or Beggars Pizza. This includes diverting business to competitors or performing any act that is injurious or prejudicial to the goodwill associated with Beggars Pizza's marks and the system. This non-compete clause restricts you from owning, maintaining, operating, or being employed by any business that offers or sells pizza, pizza products, or Italian-style food similar to those offered by Beggars Pizza restaurants within the franchisee's territory or within a ten-mile radius of any Beggars Pizza restaurant.