What is the consequence of using or duplicating any Confidential Information in any other business besides the Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- You acknowledge and agree that you do not acquire any interest in Confidential Information, other than the right to utilize that which is disclosed to you in operating the COOL BINZ Business during the term of this Agreement, and that the use or duplication of any Confidential Information in any other business would constitute an unfair method of competition. You also acknowledge and agree that the Confidential Information is proprietary, includes our trade secrets, and is disclosed to you only on the condition that you must, during and at all times after the term of this Agreement:
- a. not use Confidential Information in any other business or capacity;
- b. maintain the absolute confidentiality of Confidential Information;
- c. not make unauthorized copies of any portion of Confidential Information disclosed via electronic medium or in written or other tangible form;
- d. adopt and implement all reasonable procedures that we prescribe from time to time to prevent unauthorized use or disclosure of Confidential Information, including, without limitation, restrictions on disclosure to employees of the COOL BINZ Business and others; and
- e. immediately upon the expiration of termination of this Agreement, return and cease using in any way all Confidential Information and provide us with immediate access to all computer or other electronic or other storage media, including without limitation, hard drives, memories, CDs, floppy disks, DVDs, zip drives, PDAs, jump drives or other peripheral drives and memory cards, containing any Confidential Information for the purpose of removing such Confidential Information or, if mutually agreed upon, surrender such devices to us.
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- The foregoing restrictions will not apply to the information that:
- a. is now public knowledge or hereafter becomes public knowledge through no fault of yours;
- b. is properly provided to you without restriction by a third party having no such restriction;
- c. is required to be disclosed by order of a competent court or governmental authority, provided, however, that you provide us with prompt written notice of any claim or litigation that could give rise to such a requirement, you furnish only that portion of the Confidential Information that you are required to disclose, and you advise the governmental authority of your confidentiality obligations under this Agreement and seek to obtain
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, using or duplicating any Confidential Information in any business other than the Cool Binz franchise is considered an unfair method of competition. Franchisees acknowledge that they only have the right to use the Confidential Information disclosed to them for operating their Cool Binz Business during the term of the Franchise Agreement.
Cool Binz considers its Confidential Information proprietary and inclusive of its trade secrets. Franchisees are obligated to maintain absolute confidentiality both during and after the term of the agreement. They are prohibited from using the Confidential Information in any other business or capacity and from making unauthorized copies of any Confidential Information, whether disclosed electronically, in writing, or in any other tangible form.
To prevent unauthorized use or disclosure, franchisees must adopt and implement reasonable procedures prescribed by Cool Binz. This includes restricting disclosure to employees and others. Upon expiration or termination of the Franchise Agreement, franchisees must immediately return and cease using all Confidential Information. They must also provide Cool Binz with access to all computer, electronic, or other storage media containing any Confidential Information for removal or, if mutually agreed, surrender the devices to Cool Binz.
These restrictions do not apply to information that is already public knowledge, becomes public knowledge through no fault of the franchisee, or is properly provided to the franchisee without restriction by a third party. Additionally, if a court or governmental authority requires disclosure, the franchisee must provide prompt written notice to Cool Binz, disclose only the required portion of the Confidential Information, and advise the governmental authority of their confidentiality obligations while seeking assurance of confidential treatment for the information.