Does the restriction on furnishing confidential information about Coffee News survive the expiration of the Franchise Agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.2 Use of Trade Secrets. Franchisee shall not directly or indirectly furnish to any other party any confidential information as to the "Coffee News" Format, methods of operation, advertising, promotion, ideas or any other information relating to Franchisor's business of "Coffee News" without the written consent of Franchisor. The provisions contained herein shall survive the termination, expiration, transfer, assignment, of this Agreement. Franchisee shall execute a non-disclosure or confidentiality agreement with its employees, officers, key personnel, agents, or stockholders, as the case may be, that such employees, officers, key personnel, agents, or stockholders, as the case may be, shall be bound by the contractual provisions contained in this paragraph, and will be liable for damages, reasonable attorney fees and court cost if the Franchisor has to enforce their contractual rights by legal actions.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the restrictions on disclosing confidential information about the Coffee News franchise survive the termination, expiration, transfer, or assignment of the Franchise Agreement. This means that even after the agreement ends, a franchisee cannot share confidential details about the Coffee News format, operational methods, advertising strategies, promotional activities, ideas, or any other information related to the Coffee News business without the franchisor's written consent.
This obligation extends to the franchisee's employees, officers, key personnel, agents, or stockholders, who must also sign a non-disclosure or confidentiality agreement. If Coffee News has to take legal action to enforce these confidentiality agreements, the franchisee may be liable for damages, reasonable attorney fees, and court costs.
This is a standard practice in franchising to protect the franchisor's trade secrets and proprietary information. Prospective Coffee News franchisees should understand that this confidentiality obligation is a long-term commitment that continues even after they are no longer operating the franchise.