What section of the Ella Cafe Development Agreement concerns the use of Confidential Information?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
6.1. Nondisclosure of Confidential Information. Developer and its Owners must maintain the confidentiality of all Confidential Information. Developer must use Confidential Information only in connection with the development of the Coffee Houses and must divulge Confidential Information only to Developer's employees and only on a need-to-know basis. This obligation will survive expiration or termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, Section 6 of the Development Agreement outlines the provisions regarding the use of Confidential Information. Specifically, Section 6.1 addresses the nondisclosure of confidential information.
This section mandates that both the Developer and its Owners must maintain the confidentiality of all Confidential Information. The Developer is permitted to use this information solely for the development of Ella Cafe Coffee Houses. Furthermore, the Developer can only share Confidential Information with employees who require it to perform their duties, operating on a need-to-know basis.
It is important to note that the obligation to maintain confidentiality extends beyond the term of the Development Agreement, meaning that even after the agreement expires or is terminated, the Developer and its Owners must continue to protect the Confidential Information. This is a standard practice in franchising to protect the franchisor's proprietary information and maintain a competitive advantage.