What are some examples of trade secrets that a Cilantro Taco Grill franchisee might have access to?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Multi-Unit Operator acknowledges and accepts that during the term of this Agreement, Multi-Unit Operator will have access to Franchisor's trade secrets, including, but not limited to, recipes, methods, processes, customer lists, vendor partnerships and/or relationships, sales and technical information, financial information, costs, product prices and names, software tools and applications, website and/or email design, products, services, equipment, technologies and procedures relating to the operation of the Franchised Business; the Manual; methods of advertising and promotion; instructional materials; any other information which Franchisor may or may not specifically designate as "confidential" or "proprietary"; and the components of the System, whether or not such information is protected or protectable by patent, copyright, trade secret or other proprietary rights (collectively referred to herein as the "Confidential Information").
Multi-Unit Operator shall not, during the term of this Agreement and thereafter, communicate or divulge to, or use for the benefit of, any other person or entity, and, following the expiration or termination of this Agreement, shall not use for Multi-Unit Operator's own benefit, any Confidential Information that may be communicated to Multi-Unit Operator or of which Multi-Unit Operator may be apprised in connection with the development of Cilantro Taco Grill outlets under the terms of this Agreement.
Multi-Unit Operator shall not at any time copy, duplicate, record or otherwise reproduce any Confidential Information, in whole or in part, or otherwise make the same available to any person, without Franchisor's prior written consent.
The covenant in this Section 8.1 shall survive the expiration, termination or transfer of this Agreement or any interest herein and shall be perpetually binding upon Multi-Unit Operator.
- 8.2 Protection of Information.
Multi-Unit Operator shall take all steps necessary, at Multi-Unit Operator's own expense, to protect the Confidential Information and shall immediately notify Franchisor if Multi-Unit Operator finds that any Confidential Information has been divulged in violation of this Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–37)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, franchisees gain access to valuable trade secrets. These trade secrets include, but are not limited to, recipes, methods, processes, customer lists, vendor partnerships and/or relationships, sales and technical information, financial information, costs, product prices and names, software tools and applications, website and/or email design, products, services, equipment, technologies and procedures relating to the operation of the Franchised Business; the Manual; methods of advertising and promotion; instructional materials; any other information which Franchisor may or may not specifically designate as "confidential" or "proprietary"; and the components of the System.
Cilantro Taco Grill emphasizes the importance of protecting this confidential information. Franchisees must take necessary steps, at their own expense, to safeguard this information and must notify Cilantro Taco Grill if any confidential information is divulged in violation of the franchise agreement. This obligation to protect confidential information extends beyond the termination or transfer of the agreement, remaining perpetually binding.
Franchisees also receive a current copy of the Operations Manual, which contains trade secret and confidential information. Franchisees must treat the manual, written directives, and other materials as confidential and limit access to only those employees who need the information to operate the franchised business. These employees must be trained on the restrictions and conditions for using Cilantro Taco Grill's intellectual property. Franchisees and their principals must agree not to copy or reproduce these materials without prior written consent from Cilantro Taco Grill.