Does the section on Confidential Information in the Bombs Away Guaranty survive the termination or expiration of the Franchise Agreement?

According to Bombs Away's 2024 Franchise Disclosure Document, the Guaranty agreement includes provisions regarding the use of confidential information, and these provisions survive the termination or expiration of the Franchise Agreement indefinitely. The guarantor acknowledges that all confidential information is owned by Bombs Away Franchising or its affiliates, except for information Bombs Away Franchising licenses from another entity. The guarantor also acknowledges that all customer data generated or obtained is confidential information belonging to Bombs Away Franchising.

This means that even after the franchise agreement ends, the guarantor remains obligated to protect Bombs Away's confidential information. This obligation extends to adhering to security procedures, limiting disclosure to employees, and preventing unauthorized use or reproduction of the information. The guarantor must also report any unauthorized disclosure or use of confidential information.

This indefinite survival clause is a standard practice in franchising to protect the franchisor's proprietary information and trade secrets. Prospective Bombs Away franchisees should understand that their responsibility to safeguard confidential information extends beyond the term of the franchise agreement, and any breach of this obligation could have legal and financial consequences.