Does the definition of 'Confidential Information' for Boulder Designs include financial information?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Confidential Information" means all technical and non-technical information used in or related to BOULDER DESIGNS Businesses including but not limited to current, former, and prospect client list and related information and not commonly known by or available to the public, including, without limitation, Trade Secrets, system standards and specifications, all information contained in the franchise manual, proprietary processing table with mailbox jig, texture mats and accessories, financial information, marketing data, vendor and supplier list, and all other knowledge and know-hows, and any other information identified as confidential when delivered by Franchisor.
Confidential Information shall not include, however, any information established by documentary evidence that: (a) is now or subsequently becomes generally available to the public through no fault of Franchisee; (b) Franchisee can demonstrate was rightfully in its possession, without obligation of nondisclosure, prior to disclosure pursuant to this Agreement; (c) is independently developed without the use of any Confidential Information; or (d) is rightfully obtained from a third party who has the right, without obligation of nondisclosure, to transfer or disclose such information;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the definition of 'Confidential Information' does include financial information. Specifically, the FDD states that 'Confidential Information' encompasses all technical and non-technical data related to Boulder Designs businesses that are not publicly known. This includes, but is not limited to, trade secrets, system standards, information within the franchise manual, proprietary processing tables, texture mats, accessories, financial information, marketing data, and vendor/supplier lists.
This means that as a Boulder Designs franchisee, you are obligated to protect a wide array of information related to the business, including its financial aspects. This obligation extends to preventing unauthorized access or disclosure of this information to third parties. The FDD also clarifies that information is considered confidential unless it becomes publicly available through no fault of the franchisee, was already rightfully in the franchisee's possession, is independently developed, or is rightfully obtained from a third party with the right to disclose it.
The inclusion of financial information within the definition of 'Confidential Information' is a standard practice in franchising. It protects the franchisor's business model and proprietary information. Franchisees should be aware of their responsibilities to safeguard this information, as breaches of confidentiality can lead to legal and financial repercussions. Prospective franchisees should carefully review the confidentiality clauses within the franchise agreement to fully understand their obligations.