What is the minimum restrictiveness required for the employee agreement regarding Cinnabon's Confidential Information and Trade Secrets?

According to Cinnabon's 2025 Franchise Disclosure Document, franchisees must ensure that all employees with access to Confidential Information and Trade Secrets are aware of the confidentiality restrictions outlined in the Franchise Agreement. The employee agreement must be at least as restrictive as the terms set forth in the Franchise Agreement itself. This obligation extends to all employees who have access to Cinnabon's Confidential Information and Trade Secrets.

Confidential Information includes non-public details related to the Cinnabon system, such as the Standards and Manuals, pricing information, franchise network materials, bakery designs, recipes, supplier information, training materials, marketing plans, and the Franchise Agreement itself. Trade Secrets are defined as information that holds independent economic value due to its confidentiality, including the composition of proprietary goods, recipes, advertising strategies, and marketing analyses.

This requirement ensures that Cinnabon's sensitive business information remains protected, preventing unauthorized disclosure or use by employees. Franchisees must implement legally sound and enforceable agreements to maintain the confidentiality of this information. The agreement must be followed even before the bakery opens, as franchisees receive valuable information and training about the system before operations begin.

For a prospective Cinnabon franchisee, this means carefully drafting and implementing employee agreements that mirror the confidentiality terms in their own Franchise Agreement. They must ensure employees understand these obligations and are legally bound to protect Cinnabon's Confidential Information and Trade Secrets. Failure to do so could result in breaches of confidentiality, potentially harming the Cinnabon brand and system.