table_specific

On what page does the Burros Fries FDD discuss the relationship of the parties, specifically the franchisee as an independent contractor?

Burros_Fries Franchise · 2024 FDD

Answer 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, the relationship between the franchisee and any independent contractors they may employ is discussed on page 76. Specifically, the FDD states that neither the franchisee nor any of its independent contractors may disclose or use confidential and proprietary information, except as required in the performance of their duties under the Franchise Agreement.

This clause emphasizes the importance of protecting Burros Fries's confidential information, which includes strategies for site acquisition, proprietary recipes, food preparation techniques, and other operational procedures. The franchisee is responsible for ensuring that all independent contractors sign agreements to protect this information, both during and after their engagement.

This is a standard practice in franchising, as franchisors need to protect their trade secrets and operational methods. Prospective Burros Fries franchisees should carefully review Section 16.A of the Franchise Agreement, which further defines "Confidential Information," and understand their obligations to safeguard this information and ensure their independent contractors do the same. Franchisees must take necessary steps, at their own expense, to protect this information and prevent its unauthorized release.

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.