Is the Guarantor allowed to use Crave Cookies confidential information in any other business?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidential Information.** With respect to all Confidential Information Guarantor shall (a) adhere to all security procedures prescribed by Crave Cookies Franchising for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business; (c) not use any such information in any other business or in any manner not specifically authorized or approved in writing by Crave Cookies Franchising, (d) exercise the highest degree of diligence and make every effort to maintain the confidentiality of all such information during and after the term of the Franchise Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized
disclosure or use of Confidential Information. Guarantor acknowledges that all Confidential Information is owned by Crave Cookies Franchising or its affiliates (except for Confidential Information which Crave Cookies Franchising licenses from another person or entity). Guarantor acknowledges that all customer data generated or obtained by Guarantor is Confidential Information belonging to Crave Cookies Franchising. This Section will survive the termination or expiration of the Franchise Agreement indefinitely.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the Guarantor is explicitly restricted from using Crave Cookies's confidential information in any other business. The Guarantor must adhere to security procedures, disclose information only to employees for business operation, and obtain written authorization from Crave Cookies Franchising for any other use. This obligation extends both during and after the term of the Franchise Agreement.
The Guarantor is expected to exercise a high degree of diligence to maintain the confidentiality of all such information. They are prohibited from copying or reproducing any confidential information and must promptly report any unauthorized disclosure or use of the information. The FDD specifies that all customer data generated or obtained by the Guarantor is considered confidential information belonging to Crave Cookies Franchising.
This restriction is designed to protect Crave Cookies's proprietary information and maintain its competitive advantage. The clause survives the termination or expiration of the Franchise Agreement indefinitely, meaning the Guarantor's obligation to protect confidential information continues even after the franchise relationship ends. This is a standard practice in franchising to safeguard trade secrets, customer data, and other sensitive business information.