Under what circumstances can Crisp & Green provide a franchisee's financial data to third parties?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
er than a "CRISP & GREEN"-branded restaurant operated by us or our Affiliates, or under a franchise agreement with us).
"Confidential Information" – Our proprietary and confidential information relating to the development and operation of Restaurants, including: (1) ingredients, recipes, and methods of preparation and presentation of food products we authorize; (2) site selection criteria for Restaurants and plans and specifications for the development of Restaurants; (3) sales, marketing and advertising programs and techniques for Restaurants; (4) identity of suppliers, and knowledge of specifications and pricing for food products, materials, supplies and equipment, we authorize; (5) knowledge of operating results and financial performance of Restaurants, other than the Franchised Restaurant and other Restaurants you own; (6) methods of inventory control, storage, product handling, training and management relating to Restaurants; (7) computer systems and software programs; (8) the Operations Manual and all of its contents; and (9) any and all other information we provide you, your Principal Owners or Affiliates that is designated orally or in writing as proprietary or confidential, or by its nature would reasonably be understood to be proprietary or confidential, regardless of whether such information is specifically designated as proprietary or confidential.
"Crisp & Go Location" – A designated pickup area located at a site we have approved from which customers pick up fulfilled orders of food and beverage products that have been fully prepared at a Restaurant and are ready for consumption.
"Customer Data" – Any information from, about, or relating to any person who has been a customer of your Franchised Restaurant that identifies, or can be used to identify, contact, locate,
or be traced back to the specific person to whom such information pertains, or from which identification or contact information of an individual person can be derived. Customer Data includes any personally identifiable information, such as a person's name, address, phone number, fax number, e-mail address, passport number, financial profile, credit card information, or any other information by which one is reasonably able to personally identify one or more individuals.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
Based on the 2024 Crisp & Green Franchise Disclosure Document, franchisees must acknowledge that they may have access to confidential information related to the business, including knowledge of operating results and financial performance of restaurants other than their own. This information is considered a valuable asset of Crisp & Green. Franchisees are obligated to protect this confidential information and are not allowed to disclose it to any person or permit any person to use, view, or access the confidential information without prior written consent from Crisp & Green.
The definition of "Confidential Information" includes knowledge of operating results and financial performance of Crisp & Green Restaurants, excluding the franchisee's own restaurant and other restaurants they own. This means that Crisp & Green considers financial data from its company-owned and franchised locations as proprietary and confidential.
While the FDD excerpt specifies what franchisees cannot do with Crisp & Green's confidential financial data, it does not explicitly state under which circumstances Crisp & Green itself can share a franchisee's financial data with third parties. A prospective franchisee should seek clarification from Crisp & Green regarding their policies on sharing franchisee financial data, including to whom it might be disclosed (e.g., lenders, potential buyers of the franchise system) and under what conditions.