What procedures must a Chocolate Fish Coffee franchisee adhere to for maintaining the confidentiality of Confidential Information?
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, franchisees must adhere to specific procedures to maintain the confidentiality of sensitive information. These procedures include following all security measures prescribed by Chocolate Fish Coffee for maintaining confidentiality. Franchisees are only allowed to disclose confidential information to their employees to the extent necessary for business operations.
Furthermore, franchisees are prohibited from using confidential information in any business other than Chocolate Fish Coffee, or in any manner not explicitly authorized in writing by Chocolate Fish Coffee. Franchisees must exercise the highest degree of diligence and make every effort to maintain the confidentiality of all such information both during and after the term of the Franchise Agreement. They are also prohibited from copying or reproducing any confidential information.
Finally, franchisees are required to promptly report any unauthorized disclosure or use of confidential information. The Franchise Agreement specifies that all customer data generated or obtained by the franchisee is considered confidential information belonging to Chocolate Fish Coffee. These obligations regarding confidentiality survive indefinitely even after the termination or expiration of the Franchise Agreement.