Does Burros Fries consider knowledge of vendors and suppliers to be confidential information?
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' 2024 Franchise Disclosure Document, vendor and supplier relationships are considered confidential and proprietary information. As stated in Item 22, franchisees must maintain the confidentiality of proprietary information disclosed to them, which includes, but is not limited to, vendor and supplier relationships. This means a franchisee cannot disclose or use this information at any time during or after the agreement, except as required to perform their duties under the agreement.
This confidentiality requirement extends not only to the franchisee but also to their owners (if the franchisee is an entity), officers, directors, agents, employees, and independent contractors. All involved parties are prohibited from disclosing or using confidential information, reinforcing the importance Burros Fries places on protecting its proprietary information.
Franchisees must take all necessary steps, at their own expense, to protect this confidential information and not release it to anyone without prior written consent from Burros Fries. This obligation remains in effect both during the term of the Franchise Agreement and after its termination or expiration. This is a fairly standard practice in franchising, as protecting vendor relationships can be crucial for maintaining consistent quality and pricing within the franchise system.