Who owns the confidential information related to the Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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 or use of Confidential Information. Franchisee acknowledges that all Confidential Information is owned by BBF (except for Confidential Information which BBF licenses from another person or entity). This Section will survive the termination or expiration of this Agreement indefinitely.
13.2 Covenants Not to Compete.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend Franchising, LLC ("BBF") owns the confidential information related to the franchise. The Franchise Agreement states that all non-public information about the System, BBF, and any Better Blend business is considered confidential information. This includes the manual, methods for operating the business, plans, data, financial information, recipes, processes, vendor pricing, supply systems, marketing systems, formulas, techniques, designs, layouts, operating procedures, customer data, information, and know-how.
As a franchisee, you are required to protect this confidential information both during and after the term of the Franchise Agreement. You must adhere to BBF's procedures for maintaining confidentiality, disclose the information to employees only to the extent necessary for the business's operation, and not use the information in any other business without written authorization from BBF. You are also prohibited from copying or reproducing any confidential information and must promptly report any unauthorized disclosure or use of the information.
This obligation extends beyond the termination or expiration of the Franchise Agreement indefinitely, meaning that even after you are no longer a franchisee, you must continue to protect the confidentiality of this information. The FDD also specifies that all customer data collected or generated by the business and all data collected or generated by the point-of-sale system (excluding employee data) is confidential information belonging to BBF.
This is a standard practice in franchising, as the franchisor's proprietary information is critical to the brand's success and uniformity across all locations. Franchisees are essentially custodians of this information and must take appropriate measures to safeguard it. Failure to comply with these confidentiality obligations could result in legal action and financial penalties.