What is a Cool Binz franchisee obligated to do regarding the confidentiality of the Confidential Information?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
the insurance industry;
- j. The Customer Information, as defined in Section 5.B below; and
- k. Any other information we deem confidential.
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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
appropriate protective orders or other assurance satisfactory to us of confidential treatment for the information required to be so disclosed.
4.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees have several obligations regarding confidential information, both during the franchise term and afterward. Cool Binz defines "Confidential Information" broadly, encompassing general operating procedures, proprietary software, personnel guidelines, marketing materials, knowledge of suppliers, and operating results of other Cool Binz businesses. Franchisees must acknowledge that they only have the right to use the confidential information to operate their Cool Binz business.
During the franchise term and after, franchisees must maintain absolute confidentiality, avoid using the information in any other business, and prevent unauthorized copies. They must also implement procedures to prevent unauthorized use or disclosure, including restrictions on disclosure to employees. Upon termination or expiration of the Franchise Agreement, franchisees must return all Confidential Information and provide Cool Binz with access to all electronic storage media containing such information for removal.
Cool Binz also requires franchisees to have their Managing Owner, Designated Managers, sales, and account management employees sign non-disclosure and confidentiality agreements at the start of their employment. These agreements must prohibit the disclosure of trade secrets, customer lists, and other confidential information about the Cool Binz system. These agreements should also prevent employees from servicing or soliciting the franchisee's customers, except in their capacity as Cool Binz employees.
These confidentiality obligations are standard in franchising to protect the franchisor's proprietary information and maintain a competitive advantage. Prospective Cool Binz franchisees should carefully review the definition of "Confidential Information" and understand the scope of their obligations to avoid potential breaches of the Franchise Agreement.