Does the Confidentiality and Non-Compete Agreement for Burros Fries specify any geographic limitations on the confidentiality provisions?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Neither Franchisee nor any of its Owners if you are an Entity, officers, directors, agents, employees or independent contractors, except as required in the performance of the duties contemplated by this Agreement, may disclose or use at any time, whether during the term of this Agreement or thereafter, any confidential and proprietary information disclosed to or known by Franchisee or any such person as a result of this Agreement. Such information, includes, but shall not be limited to our confidential matters and trade secrets such as our: strategies for site acquisition, build-out, design and décor specifications; distinctive Products, Services, proprietary recipes, sauces and home-made ice cream; 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, proprietary information conceived, originated, discovered, or developed by Franchisee or by any employee of Franchisee which is not generally known in the trade or industry about our Products or Services, including information relating to discoveries, ideas, production, purchasing, accounting, engineering, website development and design, marketing, merchandising or selling of Products and Services (collectively referred to as "Confidential Information" and further defined in Section 16.A of this Agreement).
Franchisee further acknowledges that the Confidential Information was unknown to Franchisee prior to negotiation for and execution of this Agreement and that the unique and novel combination of "know how," methods, processes and techniques developed by us and licensed to Franchisee for the operation of a Burros & Fries Business are particular to the food service industry conducted by your Business. Franchisee agrees to take all steps necessary, at Franchisee's expense, to protect the Confidential Information and shall not release it to any person that does not have a need to know, including employees,
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 not specify geographic limitations. The franchisee is obligated to maintain the confidentiality of proprietary information both during the term of the Franchise Agreement and after its termination or expiration. This obligation extends to the franchisee, their owners (if the franchisee is an entity), officers, directors, agents, employees, and independent contractors.
The confidential information includes a wide array of details related to Burros Fries's business operations, such as strategies for site acquisition, build-out specifications, proprietary recipes, food preparation techniques, purchasing strategies, inventory management systems, cost and pricing strategies, and employee training programs. Franchisees must take necessary steps to protect this information and not release it to anyone without prior written consent from Burros Fries.
Upon termination or expiration of the Franchise Agreement, the franchisee must immediately cease using any confidential information, methods, trade secrets, or procedures associated with Burros Fries. This includes refraining from using any names, marks, or proprietary marks associated with the Burros Fries system. The franchisee is also required to make changes to signage, vehicles, and buildings to distinguish the business from its former appearance as a Burros Fries franchise.
While the confidentiality obligations have no geographic limitations, the non-compete agreement does include a geographic restriction. During the term of the agreement and for two years after a transfer, expiration, or termination, the franchisee cannot engage in a similar business within a ten-mile radius of the approved location or any other Burros Fries franchise or company-owned business.