What is the dependency between the franchise agreement and the use of Burros Fries Trade Secrets?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee specifically acknowledges that, pursuant to this Agreement, Franchisee will receive valuable specialized training, our Confidential Information and our System.
Franchisee agrees that, except as otherwise approved in writing by us, Franchisee shall not, during the term of this Agreement and for a period of two (2) years from the date of (i) a transfer permitted under this Agreement; (ii) the expiration or termination of this Agreement (regardless of the cause for termination); or (iii) a final order of a duly authorized arbitrator, panel of arbitrators, or a court of competent jurisdiction (after all appeals have been taken) with respect to any of the foregoing or with respect to the enforcement of this Section 19.C, either directly or indirectly for itself, or through, on behalf of, or in conjunction with, any person, persons, or legal entity, own, maintain, operate, engage in, be employed by, or have any interest in any business using any aspect of the System, the overall Burros & Fries business concept, with similar Products and/or Services within a ten (10) mile radius of the Accepted Location designated hereunder, or within a ten (10) mile radius of any other System franchise or company-owned business in existence or planned as of the time of termination or expiration of this Agreement as identified in the Franchise Disclosure Document in effect as of the date of expiration or termination of this Agreement.
The unenforceability of all or part of this covenant not to compete in any jurisdiction will not affect the enforceability of this covenant not to compete in any other jurisdictions, or the enforceability of the remainder of this Agreement. This covenant not to compete is given in part in specific consideration for access to trade secrets provided as a part of our training or ongoing support programs. In any jurisdiction in which the covenant contained in this Section 19 or any part of it is deemed not enforceable in whole or in part, Franchisee hereby grants us an option to purchase Franchisee's Business on expiration or termination of this Agreement. In such case, we may exercise this option by giving thirty (30) days' written
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the franchise agreement grants franchisees access to valuable specialized training, confidential information, and the Burros Fries system. As part of the agreement, franchisees acknowledge that they will receive this specialized training, confidential information, and the Burros Fries system.
Burros Fries franchisees agree that during the term of the agreement and for two years after a transfer, expiration, or termination, they will not engage in any business that uses any aspect of the Burros Fries system or concept, with similar products or services, within a ten-mile radius of their location or any other Burros Fries franchise or company-owned business. This restriction applies whether the franchisee is directly or indirectly involved in the competing business.
The FDD states that this covenant not to compete is specifically in consideration for access to trade secrets provided as part of Burros Fries' training or ongoing support programs. If any part of this covenant is deemed unenforceable in a particular jurisdiction, Burros Fries has the option to purchase the franchisee's business upon expiration or termination of the agreement, which they may exercise by giving thirty days' written notice.