Is the Guarantor permitted to copy or reproduce any of Crave Cookies' Confidential Information?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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' 2025 Franchise Disclosure Document, the Guarantor is explicitly prohibited from copying or reproducing any Confidential Information. The Guarantor must adhere to security procedures for maintaining confidentiality, disclose information to employees only when necessary for business operations, and avoid using the information in any unauthorized manner. They must also maintain the confidentiality of the information both during and after the term of the Franchise Agreement.
This restriction is significant because it protects Crave Cookies' proprietary information, such as recipes, marketing strategies, and operational methods. The Guarantor's role is to ensure the franchisee complies with the Franchise Agreement, including the confidentiality terms. This obligation extends indefinitely beyond the termination or expiration of the Franchise Agreement, reinforcing the long-term protection of Crave Cookies' confidential assets.
The FDD also states that all customer data generated or obtained by the Guarantor is Confidential Information belonging to Crave Cookies Franchising. This further emphasizes the importance of safeguarding this information and preventing its unauthorized use or distribution. The Guarantor's responsibility to report any unauthorized disclosure or use of Confidential Information highlights the seriousness with which Crave Cookies treats the protection of its proprietary assets.
For a prospective Crave Cookies franchisee, this means understanding that both they and their Guarantor are legally bound to protect the franchisor's Confidential Information. Failure to comply with these confidentiality obligations could result in legal action and financial penalties. Therefore, it is crucial to implement robust security measures and ensure that all employees are aware of and adhere to these confidentiality requirements.