What steps must a Cinnaholic franchisee take to protect the franchisor's confidential information?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- 20.4. Personal Covenants of Certain Bound Parties. As a condition to the effectiveness of this Agreement, and at the time Franchisee delivers this signed Agreement to Franchisor, each Bound Party of Franchisee must sign and deliver to Franchisor the Personal Covenants attached hereto as Exhibit B (the "Personal Covenants"), agreeing to be bound personally by all the provisions of Sections 20.1, 20.2 and 20.3 hereof. If there are any changes in the identity of any such Bound Party while this Agreement is in effect, Franchisee must notify Franchisor promptly and make sure the new Bound Party signs and delivers to Franchisor the Personal Covenants.
- 20.5. Agreements by Other Third Parties.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees must take several steps to protect the franchisor's confidential information. Franchisees must ensure that they and their employees and agents take appropriate steps to protect Cinnaholic's confidential information from any unauthorized disclosure, copying, or use. Franchisees must also restrict employee access to the Operations Manual on a need-to-know basis and take reasonable steps to prevent unauthorized disclosure or copying of any information in any printed or computerized Operations Manual.
Franchisees and each Bound Party agree that while the Franchise Agreement remains in effect, they 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 Cinnaholic's proprietary or confidential information, except as required to carry out Franchisee's obligations under this Agreement or as Cinnaholic has otherwise expressly approved in writing. This restriction remains in effect for five years following termination or expiration of the Franchise Agreement. 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.
Upon termination or expiration of the Franchise Agreement, franchisees must 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. Franchisees may be required to have their management, supervisory employees, and other employees who have access to confidential information execute a noncompetition, nonsolicitation, and/or nondisclosure agreement in a form prescribed by Cinnaholic.