What security procedures must the Chocolate Fish Coffee Guarantor adhere to for maintaining 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, who is typically an owner signing a personal guarantee if the franchisee is an entity, must adhere to specific security procedures to maintain the confidentiality of Chocolate Fish Coffee's proprietary information. These procedures are prescribed by Chocolate Fish Franchising. The Guarantor is obligated to disclose confidential information only to employees to the extent necessary for business operations.
The Guarantor is prohibited from using confidential information in any other business or in any manner not specifically authorized or approved in writing by Chocolate Fish Franchising. They 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.
Furthermore, the Guarantor is not allowed to copy or reproduce any confidential information and must promptly report any unauthorized disclosure or use of confidential information. The FDD specifies that all customer data generated or obtained by the Guarantor is considered confidential information belonging to Chocolate Fish Franchising. This obligation to maintain confidentiality survives indefinitely even after the termination or expiration of the Franchise Agreement.