Who owns the Confidential Information related to a Chocolate Fish Coffee franchise?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
13.1 Confidential Information. With respect to all Confidential Information, Franchisee shall (a) adhere to all 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 in writing by Chocolate Fish Franchising, (d) exercise the highest degree of diligence and effort to maintain the confidentiality of all such information during and after the term of this Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or use of Confidential Information. Franchisee acknowledges that all Confidential Information is owned by Chocolate Fish Franchising (except
for Confidential Information which Chocolate Fish Franchising licenses from another person or entity). This Section will survive the termination or expiration of this Agreement indefinitely.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Chocolate Fish Franchising owns the confidential information related to the franchise. The franchisee acknowledges that all confidential information is owned by Chocolate Fish Franchising, except for information that Chocolate Fish Franchising licenses from another entity.
This means that as a franchisee, you are entrusted with sensitive business data and strategies that ultimately belong to Chocolate Fish Coffee. You must protect this information and only use it to operate your franchise as outlined in the franchise agreement. This includes trade secrets, customer data, and operational procedures.
The franchise agreement specifies that the franchisee must adhere to Chocolate Fish Franchising's procedures for maintaining confidentiality, disclose information to employees only when necessary, and avoid using the information in unauthorized ways. These obligations extend even after the franchise agreement ends, ensuring the continued protection of Chocolate Fish Coffee's proprietary information. The guarantor also acknowledges that all customer data generated or obtained by Guarantor is Confidential Information belonging to Chocolate Fish Franchising.