What degree of diligence must the Chocolate Fish Coffee Guarantor exercise to maintain confidentiality?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Confidential Information.** With respect to all Confidential Information Guarantor shall (a) adhere to all security procedures prescribed by Chocolate Fish 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 Chocolate Fish 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 Chocolate Fish Franchising or its affiliates (except for Confidential Information which Chocolate Fish Franchising licenses from another person or entity). Guarantor acknowledges that all customer data generated or obtained by Guarantor is Confidential Information belonging to Chocolate Fish Franchising. This Section will survive the termination or expiration of the Franchise Agreement indefinitely.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee FDD, the Guarantor must exercise the highest degree of diligence and make every effort to maintain the confidentiality of all confidential information during and after the term of the Franchise Agreement. This obligation extends indefinitely beyond the termination or expiration of the agreement. The Guarantor's responsibilities include adhering to all security procedures prescribed by Chocolate Fish Franchising for maintaining confidentiality. They must also limit the disclosure of confidential information to employees, only to the extent necessary for the business's operation.
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 Chocolate Fish Franchising. They are also barred from copying or reproducing any confidential information. Furthermore, the Guarantor is required to promptly report any unauthorized disclosure or use of confidential information.
This requirement ensures that sensitive business information remains protected, preventing potential competitive disadvantages for Chocolate Fish Coffee. Prospective franchisees should understand that this obligation is significant and ongoing, requiring a proactive and diligent approach to maintaining confidentiality. The FDD also states that all customer data generated or obtained by the Guarantor is Confidential Information belonging to Chocolate Fish Franchising.