Is suggested pricing considered Confidential Information for a Black Bear Diner franchise?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement provides that our trade secrets and any information or matter that is competitively sensitive and not generally known by the public, whether or not in written or tangible form and regardless of the media (if any) on which stored, relating to the Black Bear Diner system, including recipes, food specifications, methods and techniques of food preparation, business operating systems and techniques, record-keeping and reporting methods, accounting systems, management systems and techniques, management training techniques, specifications for signs, displays, placemats, menus, bags, containers, business forms, and business stationery to be used by franchisees, designs, drawings, and specifications for business premises, operating manuals for franchisees, ideas, research and development, know-how, lists of franchisees and suppliers, suggested pricing and cost information, and business and marketing plans and proposals which we provide to you in confidence shall be deemed Confidential Information.
You must not divulge Confidential Information to anyone except employees who must have access to it in order to operate your Franchised Restaurant.
Certain individuals having access to Confidential Information, including your shareholders, officers, directors, partners, employees, members, managers and your spouse, may be required to sign nondisclosure and non- competition agreements in a form we approve.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, suggested pricing is considered Confidential Information. The FDD specifies that trade secrets and information that is competitively sensitive and not generally known to the public relating to the Black Bear Diner system is considered confidential. This includes, but is not limited to, recipes, food specifications, methods and techniques of food preparation, business operating systems and techniques, record-keeping and reporting methods, accounting systems, management systems and techniques, management training techniques, specifications for signs, displays, placemats, menus, bags, containers, business forms, and business stationery to be used by franchisees, designs, drawings, and specifications for business premises, operating manuals for franchisees, ideas, research and development, know-how, lists of franchisees and suppliers, suggested pricing and cost information, and business and marketing plans and proposals which Black Bear Diner provides to the franchisee in confidence.
As a Black Bear Diner franchisee, you are obligated to protect this Confidential Information and only share it with employees who require access to it for operating the franchised restaurant. The FDD also states that certain individuals, such as shareholders, officers, directors, partners, employees, members, managers, and the franchisee's spouse, may be required to sign nondisclosure and non-competition agreements to further protect this information.
This means that as a franchisee, you must exercise caution in how you handle and disseminate information related to suggested pricing and other sensitive aspects of the Black Bear Diner business. This is a fairly standard practice in franchising, as franchisors need to protect their proprietary information and maintain a competitive advantage. Franchisees should be aware of these obligations and ensure that they and their employees comply with the confidentiality requirements outlined in the Franchise Agreement.