What actions must a Casiola franchisee take to prevent a violation of the Confidentiality Agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (p) Franchisee fails, upon receiving actual or constructive notice, to: (1) immediately notify Franchisor of any known breach of the Confidentiality Agreement by any person or entity; (2) immediately notify Franchisor of facts and information that would cause a reasonable person to believe that a person or entity violated the Confidentiality Agreement and/or is in the process of violating the Confidentiality Agreement; and (3) take reasonable steps including ,notice to Franchisor and Franchisee's consultation with Franchisee's legal counsel, to prevent any person or entity from violating the terms of the Confidentiality Agreement and/or otherwise publicly disseminating Confidential Information;
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, a franchisee must take specific actions to prevent breaches of the Confidentiality Agreement. If a franchisee fails to take these actions after receiving notice, it can be grounds for termination of the franchise agreement.
Specifically, the franchisee must immediately notify Casiola of any known breach of the Confidentiality Agreement by any person or entity. Additionally, the franchisee must immediately inform Casiola of any facts or information that would lead a reasonable person to believe that a violation has occurred or is in progress.
Beyond notification, the franchisee is obligated to take reasonable steps, including consulting with their own legal counsel and informing Casiola, to actively prevent any person or entity from violating the terms of the Confidentiality Agreement or publicly disseminating confidential information. These measures are crucial for maintaining the integrity of Casiola's confidential business information and system-wide standards.