What specific measures are required to prevent unauthorized use or disclosure of Cream's Confidential Information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) process, retain, use, collect, and disclose our Confidential Information strictly to the limited extent, and in such a manner, as necessary for the development and operation of your Shop in accordance with this Agreement, and not for any other purpose of any kind;
- (b) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and System Standards we establish from time to time, and our and our representative's instructions;
- (c) keep confidential and not disclose, sell, distribute, or trade our Confidential Information to any person other than those of your employees and representatives who need to know such Confidential Information for the purpose of assisting you in operating your Shop in accordance with this Agreement; and you agree that you will be responsible for any violation of this requirement by any person to whom you provide Confidential Information;
- (d) not make unauthorized copies of any of our Confidential Information;
- (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 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 disclosure to key personnel. Franchisees may also 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 implemented must be no less protective than the terms outlined in the Franchise Agreement. Cream retains the right to designate or approve the form of confidentiality agreement used, but it is the franchisee's responsibility to ensure the agreement complies with and is enforceable under applicable laws. Franchisees must also destroy or return any confidential information at Cream's request.
Cream also requires franchisees to process, retain, use, collect, and disclose confidential information strictly to the limited extent necessary for the development and operation of their shop, in accordance with the Franchise Agreement. This information must be handled in accordance with the privacy policies and system standards established by Cream. Franchisees must keep confidential and not disclose, sell, distribute, or trade Cream's confidential information to any person other than employees and representatives who need to know the information to assist in operating the shop. Franchisees are responsible for any violation of this requirement by anyone to whom they provide confidential information. Additionally, franchisees are prohibited from making unauthorized copies of Cream's confidential information.
These measures are typical in franchising, as franchisors need to protect their proprietary information and trade secrets. Franchisees should carefully review the confidentiality provisions in the Franchise Agreement and understand their obligations to protect Cream's confidential information. Failure to comply with these requirements could result in legal action and termination of the franchise agreement. Prospective franchisees should also inquire about the specific types of confidential information they will have access to and the specific security measures they will be required to implement.