What safeguards must a Cream franchisee adopt and maintain to prevent unauthorized use or disclosure of Confidential Information?
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
- (f) at our request, destroy or return any of the Confidential Information.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees must adopt and maintain specific safeguards to protect the franchisor's Confidential Information. These safeguards include administrative, physical, and technical measures designed to prevent unauthorized use or disclosure. This encompasses establishing reasonable security and access measures, which likely involve controlling who has access to sensitive data and systems. Cream also requires franchisees to restrict the disclosure of confidential information to key personnel, limiting the circle of individuals who can access such information.
Furthermore, Cream mandates that individuals with access to confidential information must be bound by contractual obligations to protect it. This typically involves using confidentiality agreements to ensure that employees and others understand their responsibilities and the legal consequences of breaching confidentiality. Cream retains the right to designate or approve the form of confidentiality agreement used, although the franchisee is responsible for ensuring the agreement complies with and is enforceable under local laws.
In practical terms, a Cream franchisee must invest in creating and implementing a comprehensive security plan. This plan should cover both digital and physical security, including measures such as secure computer systems, restricted access to sensitive documents, and employee training on data protection. The franchisee bears the responsibility for ensuring that all staff and relevant parties understand and adhere to these safeguards, as any violation could result in significant harm to Cream and potential legal repercussions for the franchisee.