For how long after their employment ends are a Burros Fries General Manager's non-disclosure obligations in effect?
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,
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, both the franchisee and their employees, including the General Manager, are bound by non-disclosure obligations indefinitely. This means that even after the termination or expiration of their employment or the Franchise Agreement, they cannot disclose or use any confidential and proprietary information they gained access to during their time with Burros Fries.
This obligation extends to a wide range of confidential information, including strategies for site acquisition, build-out, design, proprietary recipes, food preparation techniques, purchasing strategies, inventory management systems, cost and pricing strategies, operational procedures, service standards, employee training programs, menus, marketing materials, and accounting methods. The FDD emphasizes that this information was previously unknown to the franchisee and is unique to the Burros Fries business.
The franchisee is responsible for taking necessary steps to protect this confidential information and ensuring it is not released to anyone without prior written consent from Burros Fries. This includes employees, agents, and independent contractors, both during and after their association with the Burros Fries business. This perpetual obligation aims to protect Burros Fries's trade secrets and maintain its competitive advantage in the food service industry.
Many franchise agreements contain clauses related to confidentiality and non-disclosure, but the duration of these clauses can vary. Some may last for a specific period after the agreement ends, while others, like the Burros Fries agreement, extend indefinitely. Prospective franchisees should carefully review these clauses to understand the full extent of their obligations.