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What must a Buona developer do before disclosing Confidential Information in legal proceedings?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

of the Confidential Information in legal proceedings when you are legally required to disclose it and you have first given us the opportunity to obtain an appropriate legal protective order or other assurance satisfactory to us that the information required to be disclosed will be treated confidentially.

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, a Buona developer is permitted to disclose Confidential Information in legal proceedings if legally required to do so. However, prior to disclosing this information, the developer must first give Buona the opportunity to obtain a legal protective order or another form of assurance. This protective order or assurance must be satisfactory to Buona, ensuring that the information required to be disclosed will be treated confidentially.

This requirement ensures that Buona has the chance to protect its sensitive business information, even when a developer faces a legal obligation to disclose it. By seeking a protective order, Buona can limit the scope of the disclosure and control who has access to the Confidential Information. This is a common practice in franchising, as franchisors seek to safeguard their trade secrets and proprietary information.

For a prospective Buona developer, this means understanding the importance of maintaining confidentiality and adhering to the proper procedures if legal disclosure becomes necessary. Failure to provide Buona with the opportunity to seek a protective order could result in a breach of the development agreement, potentially leading to legal and financial repercussions. Therefore, it is crucial to communicate with Buona promptly if faced with such a situation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.