What level of diligence is the Guarantor required to exercise in maintaining the confidentiality of Crave Cookies' 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 must exercise the highest degree of diligence and make every effort to maintain the confidentiality of all confidential information, both during and after the term of the Franchise Agreement. This obligation extends indefinitely beyond the termination or expiration of the agreement.
The Guarantor's responsibilities include adhering to all security procedures prescribed by Crave Cookies Franchising for maintaining confidentiality. They are permitted to disclose confidential information to their employees only to the extent necessary for the operation of the business. The Guarantor is explicitly prohibited from using any confidential information in any other business or in any manner not specifically authorized or approved in writing by Crave Cookies Franchising. Additionally, the Guarantor must not copy or reproduce any confidential information and must promptly report any unauthorized disclosure or use of such information.
The FDD emphasizes that all customer data generated or obtained by the Guarantor is considered confidential information belonging to Crave Cookies Franchising. This underscores the importance Crave Cookies places on protecting its proprietary information and customer data. The Guarantor's acknowledgment of Crave Cookies Franchising's ownership of confidential information further reinforces their commitment to maintaining its confidentiality. This requirement is stricter than many franchise agreements, which may only require 'reasonable' efforts to maintain confidentiality.