Who owns the confidential information related to the Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
terized, and Franchisee shall not be relieved of any obligations under this
Agreement because of any such action. Such rights of Bombs Away Franchising are in addition to any other right or remedy available to Bombs Away Franchising.
- 11.5 Business Data. All customer data and other non-public data generated by the Business is Confidential Information and is exclusively owned by Bombs Away Franchising. Bombs Away Franchising hereby licenses such data back to Franchisee without charge solely for Franchisee's use in connection with the Business for the term of this Agreement.
- 11.6 Innovations. Franchisee shall disclose to Bombs Away Franchising all ideas, plans, improvements, concepts, methods and techniques relating to the Business (collectively, "Innovations") conceived or developed by Franchisee, its employees, agents or contractors. Bombs Away Franchising will automatically own all Innovations and it will have the right to use and incorporate any Innovations into the System, without any compensation to Franchisee. Franchisee shall execute any documents reasonably requested by Bombs Away Franchising to document Bombs Away Franchising's ownership of Innovations.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising owns the confidential information related to the franchise. Specifically, all customer data and other non-public data generated by the franchisee's business is considered Confidential Information and is exclusively owned by Bombs Away Franchising. The franchisee is granted a license to use this data solely for their business operations during the term of the Franchise Agreement.
This ownership extends to any ideas, plans, improvements, concepts, methods, and techniques related to the business, which are termed "Innovations." Franchisees must disclose any Innovations to Bombs Away Franchising, which then automatically owns these Innovations and can incorporate them into the Bombs Away system without compensating the franchisee. Franchisees are required to execute documents to confirm Bombs Away Franchising's ownership of these Innovations.
The Franchise Agreement also stipulates that all Confidential Information is owned by Bombs Away Franchising or its affiliates, except for information that Bombs Away Franchising licenses from another entity. This includes all customer data generated or obtained by the franchisee. The franchisee's obligation to protect this information continues even after the termination or expiration of the Franchise Agreement.
This arrangement is typical in franchising, as it allows Bombs Away to maintain consistency and control over its brand and system-wide operations. Prospective franchisees should understand that they are entrusted with confidential information but do not own it, and they must adhere to strict guidelines to protect it, both during and after the franchise term.