What constitutes 'trade secrets' for Carbones Pizzeria, according to the FDD?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
a. Franchisor owns or controls secret recipes for the various items which give Carbone's pizzas their uniquely appealing quality, appearance and taste (collectively, the "Secret Recipes"). Franchisor may, under certain circumstances and in Franchisor's sole discretion, agree to provide Franchisee with the Secret Recipes. Franchisee further acknowledges and agrees that the Secret Recipes constitute "trade secrets" within the meaning of the Uniform Trade Secrets Act, as adopted by the State of Minnesota (Minn. Stat. Ch. 325C) and within the meaning of any trade secrets act of any state reasonably similar in scope and application to the Uniform Trade Secrets Act. Franchisee will not reveal the Secret Recipes to anyone other than the employees of Franchisee who need to know to perform their job functions, and then only as is necessary for the proper operation of the Restaurant. Franchisee agrees that no copies of the Secret Recipes shall be made except for the absolute minimum number necessary for the efficient operation of the Restaurant and that when not in use all copies of the Secret Recipes will be locked in a secure container to which only Restaurant managers or owners of Franchisee have access. Prior to revealing any part of the Secret Recipes to any employee or owner Franchisee will obtain from that employee or owner a signed agreement, in form
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the trade secrets primarily consist of the secret recipes for the various pizza items that give Carbone's pizzas their unique qualities. These recipes are considered trade secrets under the Uniform Trade Secrets Act as adopted by Minnesota and similar state laws.
For a Carbones Pizzeria franchisee, this means they may be provided with these secret recipes at the franchisor's discretion. However, the franchisee must acknowledge the confidential nature of these recipes and take strict measures to protect them. They can only reveal the recipes to employees who need to know them for their job functions, and only to the extent necessary.
Furthermore, franchisees must prevent unauthorized copying of the recipes and ensure all copies are securely stored. Prior to sharing any part of the secret recipes with an employee or owner, the franchisee must obtain a signed agreement to maintain the secrecy of the recipes. Failure to comply with these requirements could result in legal action, including injunctive relief, due to the irreparable harm caused by unauthorized disclosure.