factual

What is a Buona franchisee required to do to protect the Confidential Information during the term of the franchise agreement and after its expiration or termination?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

h, at the time of disclosure thereof by Franchisor to Franchisee, had become a part of the public domain, through publication or communication by others; or which, after disclosure to Franchisee by Franchisor, becomes a part of the public domain, through publication or communication by others.

13.2 Maintenance of Confidential Information. During the Term, and after the expiration or termination of this Agreement, Franchisee must use its best efforts to protect the Confidential Information. Accordingly, Franchisee must not communicate, divulge, or use for the benefit of any other person, persons or entity, any part of the Confidential Information. Franchisee may divulge such Confidential Information only to such employees of Franchisee who must have access to it in order to carry out Franchisee's obligations under this Agreement, and as may be required by law, provided Franchisee shall give Franchisor prior written notice of any such required disclosure by law immediately upon receipt of notice by Franchisee in order for Franchisor to have the opportunity to seek a protective order or take such other actions as it deems appropriate under the circumstances. Franchisor reserves the right to require Franchisee, or any of its owners, officers, partners, principals, managers, and employees having access to the Confidential Information to execute a confidentiality agreement or similar instrument(s) containing restrictions as those provided in this Section and, as applicable, throughout this Agreement. Such requirement shall not create an employee or joint employee relationship between Franchisor and Franchisee's employees, nor does it constitute control by Franchisor over Franchisee's employment matters.

XIV. COVENANTS

  • 14.1 Franchisee's Best Efforts. Franchisee covenants that, during the Term, except as otherwise approved in writing by Franchisor, Franchisee or, alternatively, one designated management employee or approved agent if that employee or agent assumes primary responsibility for the operation of the Franchised Business, shall devote full time energy and best efforts to the development and promotion of the Franchised Business and to the management and operation of the Franchised Business.

  • 14.2 Non-Competition and Non-Solicitation During Term. Franchisee acknowledges that Franchisee will receive valuable, specialized training and the Confidential Information. Franchisee covenants that, during the Term, Franchisee and any of its shareholders, officers, directors, members, managers, partners and guarantors, shall not, either directly or indirectly, for itself or themselves or on behalf of, or in conjunction with, any other person or entity:

  • (a) Divert or attempt to divert any business or customer of the Franchised Business to a Competitive Business (defined in Section 14.5) by direct or indirect inducements or otherwise, or to do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System;

  • (b) Have any ownership interest in, maintain, operate, engage in, serve as a director, officer, manager, employee, consultant or representative of, grant a franchise to, advise, help, make loans to, lease property to, or have any interest in, directly or indirectly, a Competitive Business. However, this covenant shall not apply to any business operated by Franchisee under a franchise agreement with Franchisor or any of its Affiliates.

  • 14.3 Post-Termination Covenants.

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding confidential information, both during the term of the franchise agreement and after its expiration or termination. Confidential Information includes details about Buona's system that are not public knowledge, such as manuals, operational standards, recipes, marketing materials, and customer data. Franchisees must make their best effort to protect this information and are prohibited from communicating, divulging, or using it for the benefit of any other person or entity.

During the term and after the agreement ends, a Buona franchisee can only share Confidential Information with employees who need access to fulfill their obligations under the agreement. If disclosure is required by law, the franchisee must provide Buona with prior written notice to allow Buona to seek a protective order or take other appropriate actions. Buona also reserves the right to require franchisees, their owners, officers, and employees to sign confidentiality agreements.

After the agreement expires or terminates, the franchisee is restricted from engaging in activities that could exploit the confidential information gained during the franchise term. For a period of two years, the franchisee cannot own, operate, or consult with any Competitive Business within the Development Area or within a ten (10) mile radius of any existing Buona Restaurant. A Competitive Business is defined as any retail establishment that derives more than ten percent (10%) of its gross sales from Italian beef and Italian sausage products and other Italian specialties. They are also prohibited from diverting customers from a Buona Restaurant to a competitive business or employing individuals who are employed by Buona or its franchisees.

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.