What are the specific obligations of a Cinnaholic franchisee regarding the protection of customer data and privacy (Item 9), and how does this relate to the franchisor's data security policies and procedures (Item 11)?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) Franchisee 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 Franchisee; or (d) has otherwise entered the public domain through lawful means.
All information which comprises the CINNAHOLIC® System including the information and data in the Operations Manual will be presumed to be confidential information of Franchisor.
- (ii) Franchisee and each Bound Party agree that while this Agreement remains in effect such party will not, directly or indirectly, disclose or publish to any party, or copy or use for such party's own benefit, or for the benefit of any other party, any of Franchisor's proprietary or confidential information, except as required to carry out Franchisee's obligations under this Agreement or as Franchisor has otherwise expressly approved in writing.
All proprietary and confidential information of Franchisor is the sole and exclusive property of Franchisor.
Franchisee and each Bound Party agree that the restriction contained in the preceding sentence will remain in effect with respect to the confidential information for five years following termination or expiration of this Agreement for any reason; provided, however, if the confidential information rises to the level of a trade secret, then such restriction shall remain in effect until such time as the information does not constitute a trade secret.
Franchisee also agrees that it and all of its employees and agents will take appropriate steps to protect Franchisor's confidential information from any unauthorized disclosure, copying or use.
At any time upon Franchisor's request, and in any event upon termination or expiration of this Agreement, Franchisee will immediately return any copies of documents where there are materials containing confidential information and will take appropriate steps to permanently delete and render unusable any confidential information stored electronically.
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, franchisees have obligations to protect the franchisor's confidential information. Item 22 outlines that Cinnaholic franchisees must acknowledge that the franchisor has developed competitively sensitive proprietary and confidential information at great expense. This information is not commonly known or available to the public. The confidential information includes all information comprising the Cinnaholic system, including data in the Operations Manual.
Cinnaholic franchisees and all bound parties must not disclose or publish any of the franchisor's proprietary or confidential information to any party, or copy or use it for their own benefit or the benefit of any other party, unless required to fulfill their obligations under the Franchise Agreement or expressly approved in writing by Cinnaholic. This restriction remains in effect while the agreement is active and for five years after termination or expiration, but if the confidential information rises to the level of a trade secret, the restriction remains in effect until the information no longer constitutes a trade secret. Franchisees must take appropriate steps to protect Cinnaholic's confidential information from unauthorized disclosure, copying, or use.
Upon Cinnaholic's request or upon termination or expiration of the agreement, franchisees must immediately return any copies of documents containing confidential information and permanently delete and render unusable any confidential information stored electronically. While Item 22 specifies the franchisee's obligations to protect confidential information, the excerpt does not specifically address customer data and privacy. Item 11 refers to the Operations Manual, which would likely contain the data security policies and procedures that franchisees must follow. A prospective franchisee should review the Operations Manual for details on data security policies and procedures.