After termination or expiration of a Crisp & Green franchise, what must the franchisee do with Confidential Information?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
othing under this Agreement or the Franchise Agreement will prevent Individual from owning for investment purposes less than five percent (5%) of a Competitive Business whose stock or other forms of ownership interest are publicly traded on a recognized United States stock exchange, and so long as neither Individual nor Franchisee controls the company in question.
Upon the expiration or other termination for any reason of my employment, association, service or ownership participation, I agree: (1) to return immediately to Franchisor or Franchisee, as the case may be, all Confidential Information, and any material(s) containing a subset thereof, in my possession that was utilized, or to which I had access, during my employment, association, service or ownership participation; (2) to refrain, beginning upon such expiration or termination and forever thereafter, from any and all contacts with customers of Restaurants for any purpose whatsoever; and (3) for a period of two (2) years, starting on the effective date of termination or expiration of my employment/service/association or ownership participation, to refrain from directly or indirectly (such as through any one or more of my spouse, domestic partner, parents, children or sibling(s) (collectively, "Immediate Family")) owning a legal or beneficial interest in, or rendering services or giving advice to: (a) any Competitive Business operating at the Premises or within a fifteen (15)-mile radius of the Premises; (b) any Competitive Business operating within a radius of fifteen (15) miles of any Restaurant in operation or under construction on the effective date of termination or expiration of my employment/service/association/ownership participation; or (c) any entity which grants franchises, licenses or other interests to others to operate any Competitive Business. In the event the Premises is located in a metropolitan area having a population of more than 100,000 persons within a ten (10)-mile radius of the Premises, the foregoing fifteen (15)-mile radius restriction will be limited to a radius of ten (10) miles from any Restaurant (including the one formerly operated under this Agreement).
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, upon the expiration or termination of employment, association, service, or ownership participation, franchisees must immediately return all Confidential Information and any materials containing a subset of it to Crisp & Green or the franchisee, depending on who utilized it or to whom the franchisee had access. This includes all proprietary and confidential information relating to the development and operation of restaurants.
Confidential Information includes ingredients, recipes, methods of food preparation, site selection criteria, sales, marketing and advertising programs, supplier identities, knowledge of operating results, methods of inventory control, computer systems, software programs, the Operations Manual, and any other information designated as proprietary or confidential.
This obligation extends indefinitely, as franchisees must refrain from any contact with customers of Crisp & Green restaurants for any purpose whatsoever, beginning immediately upon termination or expiration. Additionally, for a period of two years, franchisees are restricted from engaging in competitive business activities within specified radii of Crisp & Green locations.