Under the Beggars Pizza franchise agreement, can a franchisee disclose confidential information to its employees without any restrictions?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Each party agrees (a) to keep confidential all Confidential Information disclosed to it by the other party or by a third party; (b) not to use the Confidential Information of the other party or
a third party except to the extent reasonably necessary to perform its obligations or exercise its rights hereunder; (c) to protect the confidentiality of such Confidential Information as it protects its own Confidential Information (but in any event with no less than a reasonable degree of care); and (d) to make Confidential Information available to its own employees, consultants and contractors only on a need-to-know basis and only provided such employees, consultants or contractors are under a binding obligation of confidentiality with respect thereto.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, franchisees are not permitted to disclose confidential information to their employees without certain restrictions. The franchise agreement stipulates that franchisees can only share confidential information with their own employees, consultants, and contractors if there is a legitimate need for them to know the information.
Moreover, such employees, consultants, and contractors must be under a binding obligation of confidentiality. This means that they must have signed an agreement that legally binds them to keep the information confidential. This obligation should protect Beggars Pizza's confidential information from unauthorized use or disclosure by those who have access to it through the franchisee.
This requirement ensures that Beggars Pizza maintains control over its proprietary information and trade secrets, limiting the risk of these assets being exposed to competitors or the public. It is a fairly standard practice in franchising to have such confidentiality clauses to protect the brand and its operational methods.