What procedures must an Endless Summer Sweets franchisee adhere to for maintaining the confidentiality of Confidential Information?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 12. COVENANTS
13.1 Confidential Information. With respect to all Confidential Information, Franchisee shall (a) adhere to all procedures prescribed by Franchisor for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business; (c) not use any such information in any other business or in any manner not specifically authorized in writing by Franchisor, (d) exercise the highest degree of diligence and effort to maintain the confidentiality of all such information during and after the term of this Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or use of Confidential Information. Franchisee acknowledges that all Confidential Information is owned by Franchisor (except for Confidential Information which Franchisor licenses from another person or entity). This Section will survive the termination or expiration of this Agreement indefinitely.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, franchisees must adhere to specific procedures to protect confidential information. Franchisees must follow all procedures prescribed by Endless Summer Sweets for maintaining confidentiality. They can only disclose confidential information to employees when it is necessary for business operations.
Furthermore, franchisees are prohibited from using confidential information in any business or manner not explicitly authorized in writing by Endless Summer Sweets. Franchisees must exercise the highest degree of diligence and effort to maintain the confidentiality of all such information both during and after the term of the Franchise Agreement. They are also prohibited from copying or reproducing any confidential information.
Finally, franchisees must promptly report any unauthorized disclosure or use of confidential information. The Franchise Agreement specifies that all confidential information is owned by Endless Summer Sweets, except for information that Endless Summer Sweets licenses from another person or entity. These confidentiality obligations survive the termination or expiration of the Franchise Agreement indefinitely.