What are my obligations regarding the confidentiality of the Know-How for my Cordova franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
employees and agents where disclosure of the Know-How was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality Agreement in the form attached as Exhibit 2.
6.C. RESTRICTIVE COVENANTS: CONFIDENTIAL INFORMATION
Franchisee agrees that, at all times, both during the Term of this Agreement and after its expiration or termination, Franchisee: (a) shall not use the Confidential Information in any business or capacity other than the Cordova Business operated by Franchisee; (b) shall maintain the confidentiality of the Confidential Information at all times; (c) shall not make unauthorized copies of documents containing any Confidential Information; (d) shall take such reasonable steps as Franchisor may ask of Franchisee from time to time to prevent unauthorized use or disclosure of the Confidential Information; and (e) shall stop using the Confidential Information immediately upon the expiration, termination or Transfer of this Agreement. Franchisee agrees that the foregoing covenants and obligations shall also apply to: (a) Franchisee's Owners and Spouses and that Franchisee's Owners and Spouses shall each execute and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1; and (b) Franchisee's di
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to the 2025 Cordova Franchise Disclosure Document, as a franchisee, you have specific obligations regarding the confidentiality of the Know-How associated with the Cordova business. Know-How is defined as Cordova's trade secrets and proprietary information related to the development, establishment, marketing, promotion, and operation of the business. This includes methods, techniques, specifications, procedures, policies, marketing strategies, and information within the System, Operations Manual, and Confidential Information.
During the term of the Franchise Agreement and after its expiration or termination, you must not use the Confidential Information (which includes Know-How) in any business other than your Cordova franchise. You are required to maintain the confidentiality of this information at all times and avoid making unauthorized copies of documents containing it. Additionally, you must take reasonable steps requested by Cordova to prevent unauthorized use or disclosure of the Confidential Information and cease using it immediately upon the agreement's expiration, termination, or transfer.
These confidentiality obligations extend not only to you as the franchisee but also to your Owners, Spouses, directors, officers, employees, and agents, particularly where disclosure of Confidential Information is necessary for the franchise's operations. Owners and Spouses must execute and deliver a Franchise Owner and Spouse Agreement and Guaranty, while directors, officers, employees, and agents must execute and deliver a Confidentiality Agreement. Cordova also requires you to disclose any ideas, concepts, methods, and products you develop related to Cordova Businesses and the System, assigning these to Cordova without any obligation for Cordova to provide compensation. This ensures that all innovations and improvements remain the property of Cordova and are not used without their prior written approval.