Is the Guarantor allowed to use Bombs Away's confidential information in any other business?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
guarantor), 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 Bombs Away Franchising 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 Bombs Away Franchising, (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.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Guarantor is restricted from using the brand's confidential information in any other business. The Guarantor must adhere to Bombs Away's security procedures for maintaining confidentiality. They can only disclose confidential information to their employees to the extent necessary for the Bombs Away business operation.
Specifically, the Guarantor is prohibited from using Bombs Away's confidential information in any other business or in any manner not explicitly authorized or approved in writing by Bombs Away. The Guarantor is expected to exercise a high degree of diligence to maintain the confidentiality of all such information both during and after the term of the Franchise Agreement.
The Guarantor is also prohibited from copying or reproducing any confidential information and must promptly report any unauthorized disclosure or use of confidential information. The agreement specifies that all customer data generated or obtained by the Guarantor is confidential information belonging to Bombs Away. These obligations regarding confidential information survive the termination or expiration of the Franchise Agreement indefinitely.