For what purpose can a franchisee use Cordova's Confidential Information?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, franchisees are permitted to use the Confidential Information solely for the operation of their Cordova Business. This allowance is specifically granted during the term of the Franchise Agreement. The FDD strictly prohibits using this information for any other business or capacity outside of the franchised Cordova Business. This restriction remains in effect even after the Franchise Agreement expires or is terminated.
This means a franchisee cannot use Cordova's operational methods, client lists, or other proprietary information to start a competing business or benefit another venture. The franchisee must also take reasonable steps to protect the confidentiality of the information, preventing unauthorized copies or disclosure. If Cordova requests specific measures to safeguard the information, the franchisee is obligated to comply. Upon termination or transfer of the Franchise Agreement, the franchisee must immediately cease using all Confidential Information.
Confidential Information is defined broadly and includes trade secrets, methods, standards, techniques, procedures, data, and information related to the Cordova Business. This encompasses methods for development, marketing, and operation of Cordova businesses, consumer preferences, supplier information, client data, and the Business Management System Data. It also includes the contents of the Operations Manual and any other know-how associated with the Cordova system.
The Franchise Agreement also requires that the franchisee ensures their owners, spouses, directors, officers, employees, and agents also adhere to these confidentiality obligations. These individuals may be required to sign a Confidentiality Agreement, further emphasizing the importance Cordova places on protecting its proprietary information.