To what extent can a Chocolate Bash franchisee disclose Confidential Information to its employees?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
With respect to all Confidential Information Guarantor shall (a) adhere to all security procedures prescribed by CB Franchising for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business; (c) not use any such information in any other business or in any manner not specifically authorized or approved in writing by CB Franchising, (d) exercise the highest degree of diligence and make every effort to maintain the confidentiality of all such information during and after the term of the Franchise Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or use of Confidential Information.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, a guarantor, typically an owner, can disclose Confidential Information to their employees only to the extent necessary for the operation of the Chocolate Bash business. The guarantor must adhere to all security procedures prescribed by CB Franchising for maintaining confidentiality.
The guarantor is prohibited from using any Confidential Information in any other business or in any manner not specifically authorized or approved in writing by CB Franchising. They must exercise the highest degree of diligence and make every effort to maintain the confidentiality of all such information during and after the term of the Franchise Agreement. Additionally, the guarantor cannot copy or otherwise reproduce any Confidential Information and must promptly report any unauthorized disclosure or use of Confidential Information.
This obligation extends beyond the termination or expiration of the Franchise Agreement indefinitely. The FDD defines Confidential Information as all non-public information of or about the System, CB Franchising, and any Chocolate Bash business, including all methods for developing and operating the Business, and all non-public plans, data, financial information, processes, vendor pricing, supply systems, marketing systems, formulas, techniques, designs, layouts, operating procedures, customer data, information and know-how.