Under what circumstances can a Beggars Pizza franchisee disclose Confidential Information?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will not, during the term of the Agreement or thereafter, communicate, divulge or use for the benefit of any other person, partnership, association, limited liability company, or corporation any confidential information, knowledge or know-how concerning the methods of operation of the System including, without limitation, the Manual, recipes, ingredients, cooking procedures, customer lists, drawings, materials, or equipment which may be communicated to Franchisee or of which Franchisee may be apprised by virtue of Franchisee's operation under the terms of the Agreement ("Confidential Information"). Franchisee will divulge such Confidential Information only to such of its employees as must have access to it in order to operate the Restaurant. Any information, knowledge, know-how, techniques, and other data that Franchisor designates as confidential will be deemed confidential for the purposes of the Agreement. Notwithstanding the foregoing, nothing in the Agreement prohibits Franchisee from disclosing confidential information 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.
- 10.2 Confidentiality Agreements. At Franchisee's request, Franchisee must require Franchisee's managers and other such personnel having access to any Confidential Information as Franchisor requires to execute non-competition covenants and covenants that they will maintain the confidentiality of information they receive in connection with their employment by Franchisee at the Restaurant. Such covenants must be in the form attached hereto as Exhibit C.
10.3 Irreparable Injury. Franchisee acknowledges that any failure to comply with the requirements of this Section 10 will cause Franchisor irreparable injury, and Franchisee must pay all court costs and reasonable attorneys' fees incurred by Franchisor in obtaining specific performance of, or an injunction against violation of, the requirements of this Section 10 or such other relief sought by Franchisor.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD page 30)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from disclosing confidential information regarding the Beggars Pizza system. This includes information about the Manual, recipes, ingredients, cooking procedures, customer lists, drawings, materials, or equipment. Franchisees must ensure their employees with access to confidential information also maintain its confidentiality.
However, the FDD specifies an exception: a Beggars Pizza franchisee can disclose confidential information directly to a federal or state regulatory agency, law enforcement authority, or legislative body. This is permissible only to the extent necessary to report potential violations of applicable law or to assist in governmental investigative, enforcement, or oversight efforts. This exception is standard in franchise agreements to ensure compliance with laws and regulations.
Beggars Pizza also requires franchisees to have their managers and other personnel who have access to confidential information sign non-competition and confidentiality agreements. These agreements are in the form attached as Exhibit C to the Franchise Agreement. Failure to comply with the confidentiality requirements can cause irreparable injury to Beggars Pizza, and the franchisee may be responsible for court costs and attorney's fees incurred by Beggars Pizza in enforcing these requirements.