What does the Carvel franchise agreement require franchisees to do regarding copying or reproducing Confidential Information or Trade Secrets?

According to Carvel's 2025 Franchise Disclosure Document, franchisees are restricted from copying any portion of the manuals, except for forms and similar items included for the express purpose of copying. Franchisees must also take necessary precautions to ensure that the manuals are kept free from theft, unauthorized copying, unauthorized access, fire, or other acts that may jeopardize the confidentiality of its contents. This obligation is in place to protect the confidential information contained within these documents.

These restrictions are designed to safeguard Carvel's proprietary information, which gives the company a competitive advantage. The franchise agreement emphasizes that access to confidential information and trade secrets is a primary reason for entering into the agreement. Franchisees acknowledge that developing this information independently would be expensive, time-consuming, and difficult.

Failure to comply with these requirements can lead to a breach of the franchise agreement. Carvel emphasizes the importance of maintaining the confidentiality of its manuals and proprietary information to protect its brand and system. Franchisees should implement robust security measures to prevent unauthorized access and copying, ensuring that only authorized personnel have access to the manuals and that they are stored securely.