What happens to the franchisee's obligations related to confidentiality after the Chocolate Bash franchise agreement is terminated?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- **2.
Confidential Information.** 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 the 2024 Chocolate Bash Franchise Disclosure Document, the franchisee's confidentiality obligations extend beyond the termination or expiration of the franchise agreement. Specifically, the franchisee must maintain the confidentiality of all confidential information both during and after the term of the Franchise Agreement. This includes adhering to all security procedures prescribed by Chocolate Bash for maintaining confidentiality.
The franchisee is obligated to disclose confidential information to its employees only to the extent necessary for the operation of the business and must not use any such information in any other business or manner not specifically authorized by Chocolate Bash. The franchisee must exercise the highest degree of diligence and make every effort to maintain the confidentiality of all such information, and promptly report any unauthorized disclosure or use of confidential information.
Furthermore, the franchisee cannot copy or reproduce any confidential information. All customer data generated or obtained by the franchisee is considered confidential information belonging to Chocolate Bash. This obligation to protect confidential information survives indefinitely after the termination or expiration of the Franchise Agreement.