Does Burros Fries consider its software a valuable and proprietary product?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
modifications to the restaurant must first be approved by us and are Franchisee's sole responsibility and expense.
D. Maintain Confidentiality of Proprietary Information
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,
agents and independent contractors, either during the term or after the termination or expiration of this Agreement without our prior written consent.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the company considers its software to be confidential and proprietary. The franchise agreement specifies that franchisees must maintain the confidentiality of Burros Fries's proprietary information, which includes their software.
This means that franchisees are prohibited from disclosing or using the software in any way that is not explicitly authorized by the franchise agreement, both during and after the term of the agreement. This restriction extends not only to the franchisee but also to their owners (if the franchisee is an entity), officers, directors, agents, employees, and independent contractors. The franchisee is responsible for taking necessary steps to protect this information at their own expense.
Burros Fries also requires franchisees to use only approved technology items, including software and POS systems. This reinforces the importance of the software to the Burros Fries system and the company's control over its use and distribution. Franchisees must purchase or lease these items from Burros Fries, its affiliates, or approved vendors. Unauthorized use of unapproved software could lead to termination of the franchise agreement.
By designating its software as confidential information and mandating the use of approved systems, Burros Fries aims to maintain uniformity and protect its competitive advantage. Prospective franchisees should understand these restrictions and ensure they comply with all requirements related to software and technology to avoid potential penalties.