What procedures must a Crave Cookies franchisee adhere to for maintaining the confidentiality of Confidential Information?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to all Confidential Information, Franchisee shall (a) adhere to all 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 in writing by Crave Cookies Franchising, (d) exercise the highest degree of diligence and effort to maintain the confidentiality of all such information during and after the term of this Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or use of Confidential Information. Franchisee acknowledges that all Confidential Information is owned by Crave Cookies Franchising (except for Confidential Information which Crave Cookies Franchising licenses from another person or entity). This Section will survive the termination or expiration of this Agreement indefinitely.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, franchisees must adhere to specific procedures to maintain the confidentiality of proprietary information. These include following all confidentiality procedures prescribed by Crave Cookies Franchising, disclosing confidential information to employees only to the extent necessary for business operations, and refraining from using such information in any unauthorized manner. Franchisees must also exercise a high degree of diligence to protect the confidentiality of the information both during and after the term of the franchise agreement.
Furthermore, franchisees are prohibited from copying or reproducing any confidential information and are required to promptly report any unauthorized disclosure or use of such information. The FDD emphasizes that all confidential information is owned by Crave Cookies Franchising, except for information licensed from another entity. This obligation to protect confidential information survives the termination or expiration of the Franchise Agreement indefinitely, highlighting its importance to the Crave Cookies system.
In practical terms, this means a Crave Cookies franchisee must implement robust internal controls to safeguard sensitive business data, customer lists, recipes, marketing strategies, and other proprietary information. They must train their employees on confidentiality protocols and ensure they understand the importance of protecting this information. Failure to comply with these requirements could result in legal action and potential termination of the franchise agreement. Prospective franchisees should carefully review the specific confidentiality procedures outlined in the Crave Cookies operations manual and seek clarification from the franchisor on any ambiguous points.