What is the Chocolate Bash franchisee required to do with confidential information on electronic devices upon termination or expiration?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
eement); or
- (xiii) Franchisee or any Owner is accused by any governmental authority or third party of any act that in CB Franchising's opinion is reasonably likely to materially and unfavorably affect the Chocolate Bash brand, or is charged with, pleads guilty to, or is convicted of a felony.
- 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:
- (i) pay all amounts owed to CB Franchising based on the operation of the Business through the effective date of termination or expiration;
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee must delete all Confidential Information and proprietary materials from electronic devices. This requirement is part of the broader obligations that survive the termination or expiration of the agreement, which also include matters pertaining to non-competition, confidentiality, indemnity, and dispute resolution.
This means that a franchisee cannot retain any digital documents, data, or other proprietary information related to the Chocolate Bash business on any computers, tablets, smartphones, or other electronic storage devices they possess once the franchise agreement ends. This includes, but is not limited to, customer lists, recipes, marketing strategies, and operational manuals.
The obligation to delete confidential information from electronic devices is a standard practice in franchising to protect the brand's intellectual property and trade secrets. Franchisees should ensure they have a system in place to properly remove all such data to avoid potential legal issues with Chocolate Bash after the franchise term concludes. This may involve wiping devices or using secure deletion software to prevent data recovery.