Does the Buns On Fire Franchise Agreement specify that knowledge of suppliers is considered Confidential Information?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
We possess and will further develop and acquire certain confidential and proprietary information and trade secrets including, but not limited to, the following categories of information, methods, techniques, procedure, technologies, and knowledge that we, our affiliates, or our franchisees have developed or will develop (the "Confidential Information") including: (1) methods, techniques, specifications, standards, policies, procedures, information, concepts and processes relating to knowledge of and experience in the development,
operation, and franchising of the Franchise Business; (2) marketing and promotional programs for the Franchise Business and customer information; (3) recipes, cooking methods, and ingredient lists; (4) methods of operation; (5) knowledge of specifications for and knowledge of suppliers of certain materials, equipment and supplies for the Franchise Business; (6) operating results and financial performance of the Franchise Business; (7) the Operations Manual; and (8) the terms of the Franchise Agreement.
Under the Franchise Agreement, we will disclose to you parts of the Confidential Information as are required for the development and operation of the Franchise Business during training and in the course of any guidance or assistance furnished to you. You may learn or otherwise obtain from us additional Confidential Information during the term of the Franchise Agreement. You must agree to disclose the Confidential Information to your Stakeholders and employees only to the extent permitted by the Franchise Agreement.
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, knowledge of suppliers is considered Confidential Information. The FDD specifies that Buns On Fire possesses confidential and proprietary information and trade secrets. This includes methods, techniques, procedures, technologies, and knowledge developed by Buns On Fire, its affiliates, or its franchisees.
Specifically, the definition of Confidential Information includes "knowledge of specifications for and knowledge of suppliers of certain materials, equipment and supplies for the Franchise Business." This means that as a Buns On Fire franchisee, you are obligated to keep information about the suppliers of materials, equipment, and supplies confidential.
This obligation extends beyond the term of the Franchise Agreement. Franchisees must agree not to use the Confidential Information in any other business or capacity and must maintain its absolute confidentiality. They also must implement procedures to prevent unauthorized use or disclosure and require stakeholders and employees to sign confidentiality agreements. This is a fairly standard practice in franchising, as franchisors need to protect their proprietary information to maintain a competitive advantage and the integrity of their brand.