When does a Crepe De Licious franchisee's obligation to protect trade secrets begin and end?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
11.02 Protection of Confidential Information and Data. You will use the Confidential Information only in the operation of the Franchised Business, and you will not disclose Confidential Information to others, except as expressly authorized by this Agreement. You will take all appropriate actions to preserve the confidentiality of all Confidential Information, including keeping the Operations Manual in a locked location. Access to Confidential Information must be limited to only your employees who need the Confidential Information to perform their jobs and who are subject to your general policy on maintaining confidentiality as a condition of employment or who have first signed our Confidentiality and Non-Competition Agreement. You will not copy or permit copying of Confidential Information. Your obligations under this section begin when you sign this Agreement and continue for trade secrets as long as they remain secret, and, for other Confidential Information, for as long as we continue to use the information in confidence (even if edited or revised) plus three (3) years. We will respond promptly and in good faith to any inquiry by you about continued protection of any Confidential Information.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, a franchisee's obligation to protect confidential information begins when they sign the Franchise Agreement. This obligation specifically pertains to non-public trade secrets, proprietary information, technical data, or know-how related to Crepe De Licious's business, system, services, or items, including the Operations Manual, System Standards, quality-control systems, training materials, and information regarding salary, research, recipes, proprietary items and services, developments, inventions, processes, techniques, designs, marketing, finances, and operations. Franchisees must use this information only for operating their franchised business and must not disclose it to others unless expressly authorized. They are required to take appropriate actions to maintain the confidentiality of all Confidential Information, such as keeping the Operations Manual in a locked location and limiting access to employees who need the information to perform their jobs and who have signed confidentiality agreements. Franchisees must also not copy or permit the copying of Confidential Information.
The obligation to protect trade secrets continues as long as the trade secrets remain secret. For other confidential information, the obligation lasts as long as Crepe De Licious continues to use the information in confidence, even if it has been edited or revised, plus an additional three years. Crepe De Licious is committed to responding promptly and in good faith to any inquiries from the franchisee regarding the continued protection of any Confidential Information.
This extended protection period for confidential information, even after the agreement term, is a fairly standard practice in franchising. It aims to safeguard the franchisor's competitive advantage and proprietary knowledge. Prospective Crepe De Licious franchisees should carefully consider these long-term obligations and ensure they have systems in place to maintain confidentiality both during and after their franchise agreement.