Does the Carbones Pizzeria franchise agreement specify any exceptions to the rule that recipes cannot be divulged?
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 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 22–23)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, franchisees are generally prohibited from disclosing the franchisor's recipes. However, there are specific exceptions outlined in the agreement. Franchisees are permitted to share the recipes with their employees, but only to the extent necessary for the proper operation of the restaurant. This exception allows employees to perform their job functions effectively while still protecting the secrecy of the recipes.
The agreement also stipulates that franchisees must obtain a signed agreement from any employee or owner before revealing any part of the secret recipes. This agreement is designed to ensure that those who gain access to the recipes understand their obligation to maintain confidentiality. Furthermore, franchisees are required to keep all copies of the recipes locked in a secure container when not in use, with access limited to restaurant managers or owners.
These measures are in place to protect Carbones Pizzeria's trade secrets and maintain the unique quality, appearance, and taste of its pizzas. The franchisor considers these recipes to be "Trade Secrets" under the Uniform Trade Secrets Act, reinforcing the importance of keeping them confidential. Failure to comply with these restrictions can result in legal action, including injunctions and claims for actual damages.