Does the Buns On Fire Franchise Agreement require franchisees to maintain absolute confidentiality of the Confidential Information?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
You must acknowledge and agree that the Confidential Information is confidential to and a valuable asset of us and our affiliates, is proprietary, includes trade secrets of us and our affiliates and is disclosed to you on the condition that you agree that during and after the term of the applicable agreement you: (1) will not use the Confidential Information in any other business or capacity; (2) will maintain the absolute confidentiality of the Confidential Information; (3) will not make unauthorized copies of any portion of the Confidential Information disclosed in written or other tangible form; (4) will adopt and implement all reasonable procedures we prescribe to prevent unauthorized use or disclosure of the Confidential Information; and (5) will require all Stakeholders, spouses of Stakeholders, and all employees who have access to the Confidential Information to sign Confidentiality, Non-Competition, and Non-Solicitation Agreements in the form we approve and provide us, at our request, with signed copies of each agreement. Nothing contained in the Franchise Agreement will be construed to prohibit you from using the Confidential Information in connection with the operation of other Franchise Businesses according to a Franchise Agreement or other Agreements with us.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 37–39)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees are required to maintain absolute confidentiality of the Confidential Information. Buns On Fire considers this information a valuable asset and proprietary, including trade secrets. This obligation extends both during and after the term of the Franchise Agreement.
Specifically, franchisees must agree not to use the Confidential Information in any other business or capacity and must not make unauthorized copies of any portion of the Confidential Information disclosed in written or other tangible form. Franchisees are also required to implement reasonable procedures prescribed by Buns On Fire to prevent unauthorized use or disclosure of the Confidential Information.
Furthermore, franchisees must ensure that their Stakeholders, spouses of Stakeholders, and all employees who have access to the Confidential Information sign Confidentiality, Non-Competition, and Non-Solicitation Agreements in a form approved by Buns On Fire. Signed copies of these agreements must be provided to Buns On Fire upon request. However, the Franchise Agreement does not prevent franchisees from using the Confidential Information in connection with the operation of other Buns On Fire Franchise Businesses under a separate Franchise Agreement with them.
There are limited exceptions to the confidentiality restrictions if Buns On Fire provides prior written consent, or if the information becomes generally known through no fault of the franchisee. Disclosure may also be permissible in judicial or administrative proceedings if legally compelled, provided that Buns On Fire is notified beforehand and given the opportunity to obtain a protective order to ensure confidential treatment of the information.