To whom can the Guarantor disclose Chocolate Bash confidential information?
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.
Guarantor acknowledges that all Confidential Information is owned by CB Franchising or its affiliates (except for Confidential Information which CB Franchising licenses
from another person or entity). Guarantor acknowledges that all customer data generated or obtained by Guarantor is Confidential Information belonging to CB Franchising. This Section will survive the termination or expiration of the Franchise Agreement indefinitely.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the Guarantor can disclose confidential information to its employees, but 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 the confidential information in any other business or in any manner not specifically authorized or approved in writing by CB Franchising. The Guarantor 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 indefinitely beyond the termination or expiration of the Franchise Agreement. The FDD specifies that all customer data generated or obtained by the Guarantor is considered Confidential Information belonging to CB Franchising. This underscores the importance of protecting this information and adhering to the outlined restrictions to avoid potential legal ramifications.