Does the confidentiality agreement for Burros Fries cover the economic and financial characteristics of the Burros Fries System?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
-
- The economic and financial characteristics of the System and franchisees, including without limitation: pricing policies, training, profitability, earnings and losses and capital and debt structures;
-
- The Products and Services of a Burros & Fries Business, including, without limitation, the scope of services performed and services refused; and
-
- All documentation of the information listed in Section 16.A including, without limitation, our training program and Operations Manual. During the term of this Agreement and for a period of five (5) years following the expiration or termination of this Agreement, Franchisee agrees not to use, divulge, directly or indirectly, any Confidential Information, without our prior written consent. Nothing contained herein shall be construed so as to require Franchisee to divulge any secret processes, techniques, formulas, or the like.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the confidentiality agreement does cover the economic and financial characteristics of the Burros Fries system. Franchisees are obligated to maintain the confidentiality of this information, which includes pricing policies, training details, profitability, earnings and losses, as well as capital and debt structures. This obligation extends both during the term of the Franchise Agreement and for a period of five years after its expiration or termination.
This means that franchisees are prohibited from disclosing this financial data to any third party without prior written consent from Burros Fries. This restriction is designed to protect the competitive advantage and proprietary information of the Burros Fries system. The confidentiality extends not only to the franchisee but also to their employees, agents, and representatives who have access to this information in order to operate the business.
For a prospective franchisee, this underscores the importance of carefully managing and protecting sensitive financial information related to the Burros Fries business. Failure to comply with these confidentiality requirements could result in legal action and potential damages. Franchisees should ensure that all staff members are aware of and adhere to these confidentiality obligations to avoid any unintentional breaches.