During the term of the Cinnabon franchise agreement, what actions are franchisees and their owners prohibited from doing with Confidential Information or Trade Secrets, according to the FDD?

According to the 2025 Cinnabon Franchise Disclosure Document, franchisees and their owners are restricted from certain actions regarding Confidential Information and Trade Secrets during the term of the agreement. Specifically, they cannot appropriate or use any Confidential Information or Trade Secret for purposes outside the scope of the agreement. They are also prohibited from disclosing or revealing any portion of the Confidential Information or any Trade Secret to any person, unless that person is a director, officer, owner, management employee, or other individual with a legitimate business need to know the information to operate the franchised business.

The permitted individuals must also be aware of the confidentiality restrictions outlined in the agreement and be bound by similar non-disclosure terms. This ensures that sensitive information remains protected and is only accessible to those directly involved in the Cinnabon franchise's operation and who have agreed to maintain its confidentiality.

These restrictions apply even before the Cinnabon franchised business opens, as franchisees receive valuable information and training about the Cinnabon system and business operation beforehand. Franchisees are liable under these provisions even if they do not open the franchised business, highlighting the importance Cinnabon places on protecting its Confidential Information and Trade Secrets. The FDD emphasizes that access to this information is a primary reason for entering into the franchise agreement, underscoring its competitive value and economic significance to the franchisee's business development.