Under what circumstances are the restrictions on Confidential Information not applicable to a Cool Binz franchisee?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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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, there are specific instances where the confidentiality restrictions do not apply to franchisees. This means that in certain situations, a franchisee is not obligated to keep certain information about Cool Binz confidential.
The restrictions on using and protecting Cool Binz's Confidential Information do not apply if the information is already public knowledge or becomes public knowledge without any fault on the franchisee's part. This acknowledges that information already in the public domain cannot reasonably be kept secret by the franchisee. Also, if a third party provides the franchisee with the information without any restrictions and the third party isn't bound by any confidentiality agreement with Cool Binz, the franchisee is not obligated to keep that information confidential.
Finally, if a court or governmental authority orders the franchisee to disclose Confidential Information, the restrictions do not apply, provided that the franchisee gives Cool Binz prompt written notice of the claim or litigation, only discloses the required portion of the Confidential Information, and advises the governmental authority of their confidentiality obligations, seeking to obtain a protective order. This ensures that the franchisee complies with legal requirements while also attempting to protect Cool Binz's Confidential Information to the extent possible.