factual

Does the Confidentiality and Non-Compete Agreement for Burros Fries include a section specifically labeled 'RECITALS'?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

This Agreement is made and entered into , 20, between Burros & Fries Franchise, Inc., a California corporation (hereinafter referred to as "Franchisor/we/us/our") and, (hereinafter referred to as "You").
RECITALS:
WHEREAS, we have acquired the right to develop a unique system (the "System") for the development
and operation of a restaurant
that
serves
Mexican
dishes
and a wide
variety
of
sandwiches
and
other
menu
items under the name and mark "Burros & Fries" ("Mark"); and
WHEREAS, the System includes but is not limited to certain trade names, service marks, trademarks,
symbols, logos, emblems,
and
indicia of origin, including, but not limited
to the Mark and such
other
trade
names, service marks, and trademarks as Franchisor may develop in the future to identify for the public the
source of
services and products marketed under such
marks
and under the
System and representing the
System's high standards of quality, appearance
and
service standards; strategies
for
site acquisition, build
out, design and décor specifications; distinctive Products, Services, proprietary recipes, sauces,; specific
food preparation techniques, methods, procedures including standards; specifications and purchasing
strategies for all products, supplies and kitchen equipment; inventory management systems, vendors and
supplier relationships,
cost and pricing
strategies,
retail
center setup, merchandising strategies,
procedures
for cleanliness, safety, sanitation and quality control; software, service methods and techniques, operational
procedures, service standards, employee hiring, training and retention programs; menus, photographs of
food, sales, advertising, marketing and promotional materials; forms, contracts, record keeping,
reporting
procedures and accounting methods all of which
may be changed, improved and
further developed by
Franchisor from time to time and are used by Franchisor in the operation of the System ("Trade Secrets");
and
WHEREAS, the Trade Secrets provide economic advantages to us and are not generally knownto and are
not readily ascertainable by proper means by our competitors who could obtain economic value from
knowledge and use of the Trade Secrets;
and
WHEREAS, We have taken and intends to take all reasonable steps to maintain the confidentiality and
secrecy of the Trade Secrets; and
WHEREAS,
We
have
granted
You a limited
right
to manage and
participate
in the operation of a Business
using the System and the Trade
Secrets for the
period
defined
in
the
Franchise
Agreement
made
and
entered
into
, 20, ("Franchise Agreement") between You and us; and
WHEREAS, You and we have agreed in the Franchise Agreement on the importance to us and to You and
other licensed users of the System of restricting use, access and dissemination of the Trade Secrets; and
WHEREAS, it will be necessary for certain of You to have access to and to use some or all of the Trade
Secrets in the management and operation of your Business using the System; and
WHEREAS, You have agreed to obtain from your staff written agreements protecting the Trade Secrets
and the System against unfair competition; and
WHEREAS, each member of your staff wishes to remain, or wishes to become a staff member; and

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2024 FDD)

Yes, according to the 2024 Burros Fries Franchise Disclosure Document, the agreement includes a section labeled 'RECITALS'. This section appears to outline the background and purpose of the agreement, specifically referencing Burros & Fries Franchise, Inc. as the Franchisor and the franchisee as 'You'.

The 'RECITALS' section describes the System developed by Burros Fries for operating restaurants that serve Mexican dishes and sandwiches under the 'Burros & Fries' mark. It also defines the System's components, including trade names, trademarks, logos, and other identifying elements, as well as strategies for site acquisition, recipes, preparation techniques, and operational procedures. These elements are considered Trade Secrets, offering economic advantages to Burros Fries.

The 'RECITALS' section further states that Burros Fries has granted the franchisee a limited right to operate a business using the System and Trade Secrets. It emphasizes the importance of restricting access to and dissemination of these Trade Secrets, highlighting the franchisee's agreement to protect them. This section also mentions the franchisee's obligation to obtain agreements from their staff to protect the Trade Secrets and prevent unfair competition.

Disclaimer: This information is extracted from the 2024 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.
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