Does the Buns On Fire Franchise Agreement specify that operating results are 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, the Franchise Agreement does consider operating results and financial performance of the Franchise Business as Confidential Information. This means that Buns On Fire franchisees are obligated to protect this information and can only disclose it to stakeholders and employees to the extent permitted by the Franchise Agreement.
Buns On Fire considers a wide array of information as confidential, including 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; marketing and promotional programs for the Franchise Business and customer information; recipes, cooking methods, and ingredient lists; methods of operation; knowledge of specifications for and knowledge of suppliers of certain materials, equipment and supplies for the Franchise Business; the Operations Manual; and the terms of the Franchise Agreement.
As a Buns On Fire franchisee, you must acknowledge that this Confidential Information is a valuable asset of Buns On Fire and its affiliates. You are prohibited from using the Confidential Information in any other business or capacity, must maintain its absolute confidentiality, and cannot make unauthorized copies. You also need to implement reasonable procedures to prevent unauthorized use or disclosure and ensure that all stakeholders and employees with access to the information sign confidentiality agreements. These measures are typical in franchising to protect the brand's competitive advantage and proprietary knowledge.