What are the exceptions to what is considered proprietary and confidential information for the Cinnaholic system?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) Developer acknowledges and agrees that in connection with the operation of CINNAHOLIC® Bakeries and the CINNAHOLIC® System, Franchisor has developed at a great expense competitively sensitive proprietary and confidential information which are not commonly known by or available to the public. This proprietary and confidential information does not include any information that (a) is commonly known by or available to the public; (b) has been voluntarily disclosed to the public by Franchisor; (c) been independently developed or lawfully obtained by Developer; or (d) has otherwise entered the public domain through lawful means. All information which comprises the CINNAHOLIC® System including the information and data contained in any of Franchisor's operations manuals will be presumed to be confidential information of Franchisor.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to the 2025 FDD, Cinnaholic considers certain information about its bakeries and systems as proprietary and confidential. This information is not commonly known or available to the public and gives Cinnaholic a competitive advantage. However, there are exceptions to what Cinnaholic considers proprietary and confidential.
Specifically, information is NOT considered proprietary and confidential if it: (a) is already commonly known or available to the public, (b) has been voluntarily disclosed to the public by Cinnaholic, (c) has been independently developed or lawfully obtained by the franchisee, or (d) has otherwise entered the public domain through lawful means. All information within Cinnaholic's operations manuals is presumed to be confidential.
As a Cinnaholic franchisee, it is important to understand these exceptions. Information falling into these categories is not subject to the confidentiality restrictions outlined in the franchise agreement. However, franchisees should be aware that the burden of proof likely falls on them to demonstrate that information falls within one of these exceptions, especially if it is also found in Cinnaholic's operation manuals.