Where in the Burros Fries FDD can I find information about the franchisee's obligation to maintain confidentiality of proprietary information?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
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 Burros Fries's 2024 Franchise Disclosure Document, Item 22, Section D, details the franchisee's obligation to maintain the confidentiality of proprietary information. This section specifies that neither the franchisee, nor their owners, officers, directors, agents, employees, or independent contractors, can disclose or use any confidential and proprietary information, whether during or after the term of the agreement, except as required for their duties under the agreement. This obligation extends indefinitely, even after the franchise agreement terminates.
The confidential information includes, but is not limited to, Burros Fries's strategies for site acquisition, build-out, design, décor, distinctive products, services, proprietary recipes, sauces, homemade ice cream, specific food preparation techniques, purchasing strategies, inventory management systems, vendor relationships, cost and pricing strategies, retail center setup, merchandising strategies, procedures for cleanliness, safety, sanitation, quality control, software, service methods, operational procedures, service standards, employee programs, menus, photographs, sales, advertising, marketing materials, forms, contracts, record keeping, reporting procedures, accounting methods, and any proprietary information conceived by the franchisee or their employees not generally known in the trade.
The franchisee acknowledges that this confidential information was previously unknown to them and that the unique combination of know-how, methods, processes, and techniques licensed to them are specific to the food service industry as conducted by Burros Fries. The franchisee is responsible for taking all necessary steps, at their own expense, to protect this confidential information and must not release it to anyone without a need to know, including employees, agents, and independent contractors, without prior written consent from Burros Fries. This obligation ensures that Burros Fries's trade secrets and operational methods remain protected, providing a competitive advantage and maintaining brand consistency.