Can a Carbones Pizzeria franchisee's employees use confidential information?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
operation of a Competing Business, that is located or doing business in the Restricted Area.
- b. In the event of the violation of Section 4.a.(2) by Franchisee, the period of time Franchisee shall be required to abide by the breached obligation shall be extended to a period of two (2) years after Franchisee is no longer in breach of such obligation.
- 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
- purposes of this Section, "use" means to use directly or indirectly, either as an individual or as a member of, consultant to, or investor in a joint venture, partnership, limited partnership, association or other entity, or to use as an officer, director, employee, consultant, or shareholder of any corporation or other entity.
- d. Franchisee acknowledges and agrees that Franchisor's remedy at law is inadequate and that in the event of any breach or threatened breach of the provisions of this Section Franchisor shall be entitled to temporary and final injunctive relief in addition to any other relief allowed by law.
5. Franchise Fees; Royalties.
- a. Franchisee shall pay to Franchisor an initial fee of Twenty-five Thousand Dollars ($25,000.00) (the "Franchise Fee"), payable in full upon the execution of this Agreement. It is expressly understood and agreed by the parties that the Franchise Fee is and shall be fully earned by Franchisor upon the signing of this Agreement and no part of the Franchise Fee shall be refunded to Franchisee for any reason whatsoever.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, a franchisee and their employees can only use confidential information as necessary for the proper operation of the franchise. Confidential Information cannot be used directly or indirectly for any other purpose. The term "use" includes using the information as an individual or as part of any business entity, or as an officer, director, employee, consultant, or shareholder of any corporation or other entity.
Carbones Pizzeria requires franchisees to ensure that their employees and owners who have access to secret recipes sign an agreement to maintain the secrecy of these recipes. Franchisees are prohibited from attempting to alter the secret recipes and must keep all confidential information secret, only sharing it with employees when necessary for their job duties.
Carbones Pizzeria emphasizes the importance of protecting its secret recipes, as they are crucial to the brand's unique appeal. The franchise agreement states that any breach of these confidentiality obligations will cause irreparable harm to Carbones Pizzeria, entitling them to seek injunctive relief against the franchisee and their associated parties to prevent further unauthorized disclosure. This underscores the serious consequences of misusing or revealing confidential information related to the Carbones Pizzeria system.