Does the Better Blend Guaranty specify what constitutes 'Confidential Information'?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
arantor), foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Franchisee or any other person or entity (including any other guarantor) prior to making any demand upon, collecting from or taking any action against the undersigned with respect to this Guaranty; and (g) any and all other notices and legal or equitable defenses to which Guarantor may be entitled.
- 2. Confidential Information. With respect to all Confidential Information, Guarantor shall (a) adhere to all security 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 or approved in writing by BBF, (d) exercise the highest degree of diligence and make every effort to maintain the confidentiality of all such information during and after the term of the Franchise Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or use of Confidential Information. Guarantor acknowledges that all Confidential Information is owned by BBF or its affiliates (except for Confidential Information which BBF licenses from another person or entity). Guarantor
acknowledges that all customer data collected or generated by the Business and all data collected or generated by the point-of-sale system (other than data regarding employees) is Confidential Information belonging to BBF. This Section will survive the termination or expiration of the Franchise Agreement indefinitely.
3. Covenants Not to Compete.
- (a) Restriction In Term.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Guaranty agreement specifies what constitutes confidential information. The Guarantor must adhere to security procedures, disclose information only to employees as needed, and avoid unauthorized use. They must also maintain confidentiality during and after the Franchise Agreement, not reproduce confidential information, and report any unauthorized disclosure.
The Guaranty states that all customer data collected by the business and data from the point-of-sale system (excluding employee data) is confidential and belongs to Better Blend. This obligation survives the termination or expiration of the Franchise Agreement indefinitely, meaning the guarantor's responsibility to protect this information continues even after the franchise relationship ends.
Furthermore, the Franchise Agreement defines "Confidential Information" as all non-public information about the Better Blend system, Better Blend Franchising (BBF), and any Better Blend business. This includes the Manual, methods for operating the business, non-public plans, data, financial information, recipes, processes, vendor pricing, supply systems, marketing systems, formulas, techniques, designs, layouts, operating procedures, customer data, information, and know-how. This broad definition highlights the extensive scope of information Better Blend considers proprietary and essential to protect.