What level of protection must my safeguards for Cream's Confidential Information provide?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) adopt and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of any of our Confidential Information, including by establishing reasonable security and access measures, restricting its disclosure to key personnel, and/or by requiring persons who have access to such Confidential Information to be bound by contractual obligations to protect such Confidential Information and preserve our rights and controls in such Confidential Information, in each case that are no less protective or beneficial to us than the terms of this Agreement (and we reserve the right to designate or approve the form of confidentiality agreement that you use, provided that it is your responsibility to ensure that such agreement complies with and is enforceable under applicable laws in your jurisdiction); and
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, as a franchisee, you must adopt and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of Cream's Confidential Information. These safeguards include establishing reasonable security and access measures and restricting its disclosure to key personnel.
Furthermore, you may be required to ensure that individuals with access to confidential information are bound by contractual obligations to protect it and preserve Cream's rights. The safeguards you implement must be no less protective or beneficial to Cream than the terms outlined in the Franchise Agreement. Cream retains the right to designate or approve the form of confidentiality agreement used, but it remains your responsibility to ensure the agreement complies with and is enforceable under applicable laws in your jurisdiction.
This means you'll need to implement a comprehensive security system covering both digital and physical assets. Practically, this could involve measures like secure passwords, encrypted data storage, locked filing cabinets, and employee training on data protection. Cream's right to approve confidentiality agreements also means you'll need to work closely with them to ensure your safeguards meet their standards and legal requirements. Failure to adequately protect this information could result in significant penalties and irreparable harm to Cream.