factual

What happens to confidential information related to the Crave Cookies business upon termination?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

likely to materially and unfavorably affect the Crave Cookies brand;

  • (xiv) Franchisee fails to meet the health inspection standards described in Section 7.3(e) two or more times in any 36-month period; or
  • (xv) Franchisee fails to achieve a passing score on an inspection conducted by Crave Cookies Franchising, LLC two or more times in any 36-month period.
  • 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:
    • (i) pay all amounts owed to Crave Cookies Franchising based on the operation of the Business through the effective date of termination or expiration;
    • (ii) return to Crave Cookies Franchising all copies of the Manual, Confidential Information and any and all other materials provided by Crave Cookies Franchising to Franchisee or created by a third party for Franchisee relating to the operation of the Business, and all items containing any Marks, copyrights, and other proprietary items; and delete all Confidential Information and proprietary materials from electronic devices;
    • (iii) notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to Crave Cookies Franchising or any new franchisee as may be directed by Crave Cookies Franchising, and Franchisee hereby irrevocably appoints Crave Cookies Franchising, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest; to execute such directions and authorizations as may be necessary or appropriate to accomplish the foregoing; and
    • (iv) cease doing business under any of the Marks.

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2025 FDD)

According to Crave Cookies's 2025 Franchise Disclosure Document, the confidentiality obligations survive the termination or expiration of the Franchise Agreement indefinitely. This means that even after the franchise agreement ends, the franchisee must continue to protect and not disclose any confidential information related to the Crave Cookies business.

Upon termination or expiration of the Franchise Agreement, the franchisee must return to Crave Cookies all copies of the Manual, Confidential Information, and any other materials provided by Crave Cookies or created by a third party for the franchisee relating to the business's operation. This includes all items containing any Marks, copyrights, and other proprietary items. The franchisee must also delete all Confidential Information and proprietary materials from electronic devices.

The franchisee acknowledges that all customer data generated or obtained is Confidential Information belonging to Crave Cookies. This obligation extends indefinitely beyond the termination of the franchise agreement, ensuring the continued protection of Crave Cookies's proprietary information and customer data.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.