Besides operating my Buona Business, under what circumstances can I use Buona's proprietary information or trade secrets?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Except in connection with the operation of your Buona Business, you must not use any proprietary information or trade secret without our written permission. You must immediately tell us if you learn about unauthorized use of this proprietary information. We are not obligated to take any action, but we will respond to this information as we deem appropriate. We will control any litigation related to the proprietary information. We will indemnify you against losses claimed by a third party concerning your authorized use of this information.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 50–51)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, outside of operating your Buona Business, you must not use any proprietary information or trade secrets without Buona's written permission. If you become aware of any unauthorized use of this information, you are required to inform Buona immediately. While Buona is not obligated to take action, they will respond as they deem appropriate and will control any litigation related to the proprietary information. Buona will protect you against losses claimed by a third party concerning your authorized use of this information.
Buona considers certain information, knowledge, and know-how concerning them and the System to be trade secrets and proprietary information. This includes standards, specifications, management systems, recipes, menus, techniques, financial information (such as product costs and sources of supply), the Manual, and business operations and procedures. This information, if used by others, would give them a substantial competitive advantage presently enjoyed by Buona.
Franchisees are granted a limited license to use Buona's proprietary information solely for the operation of their franchised business. This is a common practice in franchising, as it protects the brand's competitive edge and ensures consistency across all franchise locations. The franchisee's right to use this information is contingent upon adhering to the terms and conditions outlined in the Franchise Agreement. This includes maintaining the confidentiality of the System and preventing unauthorized disclosure or use by employees or other parties.
It is important for prospective franchisees to understand the scope and limitations of this license, as unauthorized use of Buona's proprietary information or trade secrets could result in legal action and termination of the franchise agreement. Franchisees should also be aware of their obligation to report any suspected unauthorized use of this information to Buona, as this is crucial for protecting the brand's intellectual property and maintaining its competitive advantage.