Can the Franchisor change the 'Confidential Information' related to a Carbones Pizzeria franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
s the owner of certain commercial trade names, trademarks, service marks, domain names and other commercial symbols including associated logos now or hereafter selected, used or promoted by Franchisor and licensed to Franchisee in connection with the Carbone System (as defined below) (collectively, "Names and Marks"); and
WHEREAS, Franchisor has created and developed certain skill and know-how in the sale and preparation of pizza and various other food and beverage items, including the development of unique and valuable recipes and sales procedures, business plans, standards, specifications, methods, processes, techniques, and sourcing, all of which may be changed from time to time by Franchisor (collectively, the "Carbone System") but specifically excluding any employee policies or procedures that Franchisor may make available to Franchisee for its optional use during the term of this Agreement; and
WHEREAS, Franchisee wishes, upon the terms and conditions set forth in this Agreement, to be assisted and trained by Franchisor to engage in the business of operating a restaurant selling pizza and other items under the Names and Marks (the "Franchise"), all in accordance with the Carbone System, it being understood that Franchisee recognizes the importance to Franchisor and to the public of maintaining the distinctive standards, qualities and attributes of a Carbone's Pizza Restaurant, and Franchisee is willing to maintain such standards, qualities and attributes.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Carbones Pizzeria has the ability to change certain elements of the Carbone System, which includes items considered 'Confidential Information'. The FDD states that the Carbone System includes recipes, sales procedures, business plans, standards, specifications, methods, processes, techniques, and sourcing, all of which may be changed from time to time by Carbones Pizzeria.
This means that while franchisees are granted a franchise to use the Carbone System, Carbones Pizzeria retains the right to modify various aspects of it. These modifications can include changes to recipes, operational standards, and sourcing of ingredients. For a franchisee, this implies a need to stay updated with any changes implemented by Carbones Pizzeria to ensure compliance and maintain the standards of the franchise.
Franchisees must adhere to the Confidential Information and are restricted from using it outside the scope of their franchise agreement. They are also responsible for ensuring their employees maintain the secrecy of the Secret Recipes. Any unauthorized disclosure of the Secret Recipes or Confidential Information can result in legal action, including injunctive relief, due to the potential for irreparable harm to Carbones Pizzeria. Therefore, franchisees must implement strict measures to protect this information.