After the Cinnabon Franchise Agreement expires, am I still prohibited from revealing Confidential Information or Trade Secrets?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
o you Trade Secrets. "Trade Secrets" means information that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use. Without limiting the definition of "Trade Secrets," the following are considered to be Trade Secrets: (i) the composition of our Proprietary Goods; (ii) our Recipes; (iii) advertising, marketing, and public relations strategies; and (iv) our marketing analyses.
You may never, during the term of the Franchise Agreement, any renewal term of the Franchise Agreement, or after the Franchise Agreement expires or is terminated, reveal any of our Confidential Information or Trade Secrets to another person or use it for any other person or business. You may not copy any of our Confidential Information or Trade Secrets or give it to a third party except as we authorize. These restrictions must be followed even before you open your Bakery, since you will receive valuable information and training about the System and the operation of the Bakery before you begin operations.
You will require that all persons employed in your Bakery having access to Confidential Information and Trade Secrets are aware of the confidentiality restrictions set forth in the Franchise Agreement and similarly bind them not to disclose the Confidential Information and Trade Secrets by an agreement at least as restrictive as the terms of the Franchise Agreement.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 89–91)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the restrictions on revealing Confidential Information or Trade Secrets extend beyond the term of the Franchise Agreement. Specifically, franchisees are prohibited from revealing any of Cinnabon's Confidential Information or Trade Secrets to another person or using it for any other person or business, not only during the term of the Franchise Agreement or any renewal term, but also after the Franchise Agreement expires or is terminated. This obligation also extends to preventing the franchisee from copying any Confidential Information or Trade Secrets or giving it to a third party unless authorized by Cinnabon.
This perpetual restriction has significant implications for a Cinnabon franchisee. Even after leaving the Cinnabon system, either through the agreement's natural expiration or earlier termination, the franchisee remains legally bound to protect Cinnabon's sensitive business information. This includes a wide range of information, such as recipes, marketing strategies, and supplier information.
The FDD defines "Trade Secrets" as information that derives independent economic value from not being generally known and not being readily ascertainable by proper means. Examples of Cinnabon's Trade Secrets include the composition of their Proprietary Goods, Recipes, advertising, marketing, and public relations strategies, and marketing analyses. Franchisees must also ensure that all employees with access to Confidential Information and Trade Secrets are aware of and bound by similar confidentiality restrictions, reinforcing the importance of safeguarding this information within the Cinnabon franchise system.
This type of clause is common in franchise agreements to protect the franchisor's competitive advantage and proprietary information. Prospective franchisees should carefully consider the scope and duration of these confidentiality obligations, as they can significantly impact future business ventures or employment opportunities after leaving the Cinnabon system.