Under what circumstances is Cinnaholic permitted to disclose information regarding a Cinnaholic franchisee's business?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, Cinnaholic is permitted to disclose a franchisee's confidential business information under specific circumstances. Cinnaholic can disclose this information if it is required to carry out the franchisee's obligations under the Franchise Agreement or if Cinnaholic has provided express written approval for the disclosure. This means that franchisees should be aware that certain information about their business operations may be shared by Cinnaholic if it is necessary for fulfilling the terms of the franchise agreement or if Cinnaholic explicitly consents to the disclosure.
This provision protects Cinnaholic's confidential information while also allowing for necessary disclosures related to the franchisee's obligations. However, it also places a responsibility on the franchisee to understand what information is considered confidential and to seek written approval from Cinnaholic before disclosing any such information. Franchisees should carefully review the franchise agreement and the Operations Manual to understand the scope of confidential information and the circumstances under which disclosure may be required or permitted.
Furthermore, even after the franchise agreement terminates or expires, the franchisee's obligation to protect Cinnaholic's confidential information continues for five years, unless the information rises to the level of a trade secret, in which case the restriction remains in effect as long as the information constitutes a trade secret. This extended protection highlights the importance Cinnaholic places on maintaining the confidentiality of its proprietary information and the long-term commitment franchisees must make to uphold this confidentiality.