What is the condition under which Burros Fries' Confidential Information is disclosed to the franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
f copyrighted materials or trade secrets.
We possess certain confidential information that includes: strategies for site acquisition, build-out and design specifications, menu items, and food presentation standards, photographs of food, proprietary recipes and sauces, specific food preparation techniques, specifications for all products, supplies and kitchen equipment; purchasing strategies, inventory management systems, vendor and supplier relationships, cost and pricing strategies; retail center setup, merchandising strategies, procedures for cleanliness, safety, sanitation and quality control; guest service standards, employee hiring, training and retention guidelines; operational procedures, our Operations Manual and other written materials, software, forms, menus, contracts, record keeping and reporting procedures; sales, promotional, advertising and marketing materials; systems and knowledge of, and experience in, the operation and franchising of a Burros & Fries Business (the "Confidential Information"). We will disclose Confidential Information to you during our initial franchise training program, seminars, workshops, continuing education sessions (See Item 6 and Item 11, (14) (iv)) and conventions sponsored by us; in the Operations Manual and in guidance furnished to you during the term of your Franchise Agreement.
If you or your partners, members, managers, directors, shareholders, employees, agents or independent contractors develop any new piece of equipment, product, recipe, formula, concept, technique, process, photographs, video presentations, promotions, program or improvement in the operation or promotion of your Business, you are required to promptly notify us with all necessary related information, without compensation. However, as a matter of corporate policy, we may create an incentive program to reward you, your partners, members, managers, directors, shareholders, employees, agents or independent contractors for any new piece of equipment, product, recipe, formula, concept, technique, process, photograph, video presentation, promotion, program or improvement that we implement throughout the System. You and if you are an Entity, then one of your Owners acknowledge that any such equipment, product, recipe, formula, concept, process, program or improvement will become our property and we may use or disclose such information to other franchisees as we deem appropriate.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 42–44)
What This Means (2024 FDD)
According to Burros Fries' 2024 Franchise Disclosure Document, the disclosure of Confidential Information is conditional upon the franchisee's agreement to specific terms. Burros Fries will disclose Confidential Information to franchisees during the initial franchise training program, seminars, workshops, continuing education sessions, conventions, in the Operations Manual, and in guidance furnished during the Franchise Agreement term. This information includes strategies for site acquisition, build-out and design, menu items, recipes, operational procedures, and marketing materials.
The franchisee must agree not to use the Confidential Information in any business other than their Burros Fries franchise. They must maintain absolute confidentiality both during and after the term of the Franchise Agreement. Unauthorized copying of the Confidential Information, whether in written or electronic form, is prohibited.
Furthermore, the franchisee is required to implement reasonable procedures to prevent unauthorized use or disclosure of the Confidential Information. This includes restrictions on disclosures to employees and owners, as well as the use of non-disclosure and non-competition clauses in employment agreements, where enforceable by state law. These conditions ensure that Burros Fries' proprietary information remains protected and is used solely for the operation of the franchised business.