What is the guarantor's obligation to maintain the confidentiality of all Confidential Information disclosed to them under the Boulder Designs agreement?

According to Boulder Designs' 2025 Franchise Disclosure Document, a guarantor who signs the Guaranty and Assumption of Obligations agreement is obligated to maintain the confidentiality of all Confidential Information disclosed to them. This obligation is a crucial part of the agreement, as the franchisor, Boulder Designs Franchising, LLC, would not enter into the Franchise Agreement without this guarantee. The guarantor must agree to use the Confidential Information only for authorized purposes as outlined in the Franchise Agreement.

The guarantor's permitted disclosures of Confidential Information are explicitly limited. They can only disclose such information to the franchisee's employees on a need-to-know basis, and to the franchisee's and their own legal and tax professionals when necessary to meet legal obligations. Disclosure may also be required by law. This tight control over who can access the Confidential Information is designed to protect Boulder Designs' proprietary business methods and trade secrets.

This obligation ensures that individuals with a beneficial interest in the franchisee, who are considered "Owners," are bound by the same confidentiality standards as the franchisee. By signing the Guaranty, the owner acknowledges the importance of keeping Boulder Designs' Confidential Information secure and agrees to specific limitations on its use and disclosure. This protects Boulder Designs from potential misuse of its confidential business information.