What is Beverly Anns Cookie's right regarding the confidentiality agreements I use?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not use our confidential information in an unauthorized manner. You must take reasonable steps to prevent its improper disclosure to others and use non-disclosure and non-competition agreements with those having access to such information. We may regulate the form of confidentiality agreement that you use and must be included as a third-party beneficiary with independent enforcement rights in that agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 47–48)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Anns Cookie has the right to regulate the form of confidentiality agreements that franchisees use with their employees or others who have access to Beverly Ann's Cookie's confidential information. Furthermore, Beverly Anns Cookie must be included as a third-party beneficiary in these agreements, which grants them independent enforcement rights. This means Beverly Anns Cookie can directly enforce the terms of the confidentiality agreements, even if the franchisee does not.
This requirement ensures that Beverly Anns Cookie can protect its confidential information, such as trade secrets, operating procedures, and marketing strategies, which are crucial to maintaining the consistency and integrity of the Beverly Ann's Cookie system. By maintaining control over the confidentiality agreements, Beverly Anns Cookie aims to prevent unauthorized disclosure of sensitive information that could harm the brand or give competitors an unfair advantage.
For a prospective franchisee, this means you must use a confidentiality agreement that meets Beverly Ann's Cookie's standards and includes them as a third-party beneficiary. You cannot use just any standard confidentiality agreement; it must be one approved or regulated by Beverly Ann's Cookie. This requirement is not uncommon in franchising, as franchisors typically take measures to protect their intellectual property and trade secrets. It is important to understand the specific requirements for these agreements during the due diligence process to ensure compliance and avoid potential legal issues.
Therefore, a franchisee should obtain a copy of the approved confidentiality agreement template or guidelines from Beverly Ann's Cookie and consult with an attorney to ensure full compliance with these requirements. This will help protect both the franchisee and Beverly Ann's Cookie's interests by ensuring that confidential information is properly safeguarded.