Can Carbones Pizzeria seek damages from a franchisee who divulges recipes?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
11. Insurance.
Franchisee shall, during the term of this Agreement, secure and keep in force at Franchisee's sole expense, the minimum insurance coverages in the minimum amounts as required by Franchisor from time-to-time.
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, Carbones Pizzeria can seek injunctive relief and damages from a franchisee who divulges secret recipes. The FDD states that the unauthorized disclosure of the Secret Recipes will cause Carbones Pizzeria irreparable harm. As a result, Carbones Pizzeria may seek injunctive relief to prevent such irreparable damages. Injunctive relief can be directed against the franchisee and any of the franchisee's owners, officers, directors, shareholders, partners, joint venturers, affiliates, agents, employees, or former agents or employees.
Furthermore, the FDD states that Carbones Pizzeria considers its recipes to be trade secrets within the meaning of the Uniform Trade Secrets Act. Franchisees must not reveal the Secret Recipes to anyone other than employees who need to know to perform their job functions. Franchisees must also obtain a signed agreement from any employee or owner who will have access to the Secret Recipes, in a form acceptable to Carbones Pizzeria, agreeing to maintain the secrecy of the Secret Recipes.
In addition to injunctive relief, Carbones Pizzeria can also ask the court to award actual damages sustained if a franchisee divulges, discusses, or reveals any of the recipes to an individual that Carbones Pizzeria has not authorized. This means that if a franchisee breaches the confidentiality of the secret recipes, Carbones Pizzeria has legal recourse to protect its trade secrets and seek compensation for any losses incurred as a result of the disclosure.