What is the duration of the restriction on disclosing Cinnaholic's proprietary or confidential information after the termination or expiration of the Franchise Agreement?

According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees and other bound parties are restricted from disclosing Cinnaholic's proprietary or confidential information both during the term of the Franchise Agreement and for a period after the agreement terminates or expires. Specifically, the restriction on disclosing confidential information remains in effect for five years following the termination or expiration of the agreement.

However, there is an exception to this five-year rule. If the confidential information rises to the level of a trade secret, the restriction on disclosure extends indefinitely, lasting until the information no longer qualifies as a trade secret. This means that certain highly sensitive information, such as unique recipes or business processes that give Cinnaholic a competitive edge, are protected for as long as they maintain their trade secret status.

This clause is typical in franchise agreements to protect the franchisor's intellectual property and business methods. Prospective Cinnaholic franchisees should understand that they will be legally obligated to maintain the confidentiality of Cinnaholic's proprietary information, even after they are no longer a franchisee, with potentially indefinite restrictions on trade secrets.