factual

What is a Carbones Pizzeria franchisee required to do with Confidential Information disclosed by the Franchisor?

Carbones_Pizzeria Franchise · 2025 FDD

Answer from 2025 FDD Document

  • c. Franchisee further agrees that at no time shall it or any of its owners or employees, use any Confidential Information (as defined below) directly or indirectly, except as necessary for the proper operation of the Franchise pursuant to this Agreement. For the

  • acceptable to Franchisor, whereby that employee or owner shall agree to maintain the secrecy of the Secret Recipes.
  • b. Franchisee shall not attempt to change the Secret Recipes in any fashion, and Franchisee agrees to keep all Confidential Information disclosed by Franchisor to Franchisee hereunder secret and shall not divulge, discuss or reveal information to any person except as is necessary to disclose such information to employees in the course of their employment.
  • c. Franchisee acknowledges and agrees that any breach of this Section 10 will damage Franchisor in a manner which will not be readily susceptible to calculation; accordingly, Franchisee agrees that the unauthorized disclosure of the Secret Recipes will cause Franchisor irreparable harm and that accordingly injunctive relief (directed against Franchisee and any of Franchisee's owners, officers, directors, shareholders, partners, joint venturers, affiliates, agents, employees, or former agents or employees) may be sought by Franchisor to prevent such irreparable damages.

Source: Item 23 — RECEIPTS (FDD pages 30–116)

What This Means (2025 FDD)

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, franchisees are restricted in how they can use confidential information. Franchisees must not use any Confidential Information, directly or indirectly, except when it is necessary for the proper operation of the franchise as outlined in the franchise agreement. This obligation extends to the franchisee, their owners, and their employees.

Carbones Pizzeria franchisees must keep all Confidential Information, including secret recipes, secret and are prohibited from divulging, discussing, or revealing this information to anyone, except when disclosure to employees is necessary for their job duties. Franchisees also cannot attempt to alter the secret recipes in any way.

Because unauthorized disclosure of the secret recipes would cause irreparable harm to Carbones Pizzeria, the document states that injunctive relief may be sought against the franchisee and their owners, officers, directors, shareholders, partners, joint venturers, affiliates, agents, employees, or former agents or employees to prevent such damages. This highlights the importance Carbones Pizzeria places on maintaining the secrecy of its confidential information and the serious consequences that can arise from a breach of this obligation.

Disclaimer: This information is extracted from the 2025 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.