Does the confidentiality agreement for Burros Fries extend to patrons of the Burros Fries business?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Any person or entity, which has been or become franchisees of the System and any investors therein;
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- Any person or entity which has, have been or becomes patrons of the Business;
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- The terms of and negotiations relating to past or current Franchise Agreements with respect to the System;
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- The operating procedures of the System, including without limitation: specific food preparation methods and techniques; product knowledge, ingredients and specifications, food presentation standards, kitchen equipment operation, safety procedures, usage of POS system and related software, cost and pricing strategies; use of contracts, forms and waivers; record keeping, accounting systems and procedures; effective advertising, promotional and marketing methods, recommendations for hiring and training staff and strategies when purchasing from vendors and suppliers;
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- 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;
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- The Products and Services of a Burros & Fries Business, including, without limitation, the scope of services performed and services refused; and
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- 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 the 2024 Burros Fries Franchise Disclosure Document, the confidentiality agreement extends to patrons of the Burros Fries business. The agreement covers any person or entity that has been, is, or becomes a franchisee, investor, or patron of the Burros Fries business. This means that the confidentiality obligations are not limited to franchisees and their employees but also apply to customers of the franchise.
The confidential information includes the operating procedures of the Burros Fries system, such as food preparation methods, product knowledge, ingredients, presentation standards, equipment operation, safety procedures, POS system usage, cost and pricing strategies, contracts, forms, waivers, record keeping, accounting, advertising, promotional methods, hiring and training recommendations, and vendor purchasing strategies. It also encompasses the economic and financial characteristics of the system and franchisees, including pricing policies, training, profitability, earnings, losses, and capital and debt structures. The Products and Services of a Burros & Fries Business are also considered confidential.
Franchisees are obligated to prevent the disclosure of this confidential information during the term of the agreement and for five years after its expiration or termination. This obligation extends to the franchisee's employees, agents, and representatives who need access to the information to operate the business. Franchisees must also adhere to all security procedures, including executing and delivering required documents to Burros Fries. This broad confidentiality requirement ensures that sensitive business information remains protected, maintaining the competitive advantage and integrity of the Burros Fries system.