To what extent can a Better Blend franchisee disclose Confidential Information to its employees?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
rty.
- (c) Control. BBF shall have the exclusive right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
- 12.4 Name. If Franchisee is an entity, it shall not use the word[s] "Better Blend", "Better Blend" or any confusingly similar words in its legal name.
ARTICLE 13. COVENANTS
13.1 Confidential Information. With respect to all Confidential Information, Franchisee shall (a) adhere to all procedures prescribed by BBF for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business, (c) not use any such information in any other business or in any manner not specifically authorized in
writing by BBF, (d) exercise the highest degree of diligence and effort to maintain the confidentiality of all such information during and after the term of this Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee can disclose confidential information to its employees only to the extent necessary for the operation of the business. The franchisee must adhere to all procedures prescribed by Better Blend for maintaining confidentiality. This includes not using any confidential information in any other business or in any manner not specifically authorized in writing by Better Blend.
The franchisee is expected to exercise the highest degree of diligence and effort to maintain the confidentiality of all such information during and after the term of the Franchise Agreement. They are prohibited from copying or reproducing any confidential information and must promptly report any unauthorized disclosure or use of confidential information. The FDD specifies that all confidential information is owned by Better Blend, except for information that Better Blend licenses from another person or entity.
This obligation extends beyond the termination or expiration of the Franchise Agreement indefinitely. Better Blend also has the right to communicate with a franchisee's employees and contractors on any matter related to the Better Blend system or the business. Furthermore, Better Blend may request that a franchisee cause its general manager and other key employees to sign Better Blend's current form of confidentiality and non-compete agreement.