What must a Cinnabon franchisee require all persons affiliated with them to sign regarding confidential information and trade secrets?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must require all persons affiliated with you to sign a confidentiality agreement to keep our Confidential Information and Trade Secrets confidential (see Item 14).
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD page 91)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, a franchisee must ensure that all individuals associated with their Cinnabon bakery sign a confidentiality agreement. This agreement is to protect Cinnabon's Confidential Information and Trade Secrets.
The FDD defines "Trade Secrets" as information that holds independent economic value because it is not widely known or easily discovered by others who could profit from its use. Examples of Cinnabon's trade secrets include the composition of their proprietary goods, recipes, advertising strategies, marketing approaches, and marketing analyses.
The confidentiality agreement that Cinnabon franchisees must have affiliated persons sign needs to be at least as restrictive as the terms outlined in the Franchise Agreement. This ensures that all individuals with access to sensitive information are legally bound to protect it, maintaining the competitive advantage of the Cinnabon brand. This obligation extends even before the bakery opens, as franchisees receive valuable training and information about the Cinnabon system prior to launch.