factual

Is a Burros Fries franchisee allowed to improperly use, disseminate, or disclose the software?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisee agrees not to improperly use, disseminate, or disclose the Software, and to ensure that Franchisee's employees who gain access to the Software will protect the Software against improper use, dissemination or disclosure;

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2024 FDD)

According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are explicitly prohibited from improperly using, disseminating, or disclosing the software provided to them. The franchise agreement states that franchisees must ensure their employees who have access to the software also protect it against improper use, dissemination, or disclosure. This restriction is part of a broader effort by Burros Fries to protect its valuable, proprietary information and maintain control over its operational systems.

Burros Fries emphasizes the importance of the software by stating that it is a valuable, proprietary product that required considerable investment in time, money, and effort to develop. Franchisees must treat the software as confidential, acknowledging that it contains substantial trade secrets entrusted to them for use only as authorized under the franchise agreement. This includes maintaining security precautions to prevent unauthorized access or use of the software, both during and after the term of the agreement.

The franchise agreement also specifies that franchisees cannot copy the software (except as necessary for use in the business), translate, reverse engineer, decompile, disassemble, modify, alter, or create derivative works based on the software. Additionally, franchisees are prohibited from sublicensing, renting, leasing, selling, conveying, assigning, or otherwise transferring the software or any portion thereof to any other person or entity. Failure to comply with these guidelines or allowing unauthorized usage of the software may result in termination of the franchise agreement.

Burros Fries also states that any violation of the software license would cause irreparable harm for which they would have no adequate remedy at law. In such cases, Burros Fries is entitled to seek injunctive relief against any such violation, in addition to other available remedies. This underscores the seriousness with which Burros Fries views the protection of its software and the potential consequences for franchisees who fail to comply with the terms of the franchise agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.