What exceptions exist regarding the confidentiality of information related to a Face Foundrie franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Franchisee acknowledges and agrees that in connection with the ownership, development and/or operation of Face Foundrié Facial Bars by Franchisor and its Affiliates, Franchisor and its Affiliates have developed at great expense Confidential Information that is part of the System and that is not commonly known by or available to the public.
This Confidential Information does not include any information that (i) is commonly known by or available to the public; (ii) has been voluntarily disclosed to the public by Franchisor or its Affiliates; (iii) has been independently developed or lawfully obtained by Franchisee (other than by virtue of disclosure by Franchisor or its Affiliates in connection with this Agreement); or (iv) has otherwise entered the public domain through lawful means.
- (b) Franchisee and each Restricted Party agree that while this Agreement remains in effect such party will not, directly or indirectly, disclose or publish to any Person, or copy or use for such party's own benefit, or for the benefit of any other Person, any Confidential Information, except as required to carry out Franchisee's obligations under this Agreement or as Franchisor has otherwise expressly approved in writing.
As between Franchisor, on the one hand, and Franchisee and the Restricted Parties, on the other hand, all Confidential Information is the sole and exclusive property of Franchisor.
Franchisee and each Restricted Party agree that the restrictions contained in the preceding sentences in this Section 7.02(b) will remain in effect with respect to Confidential Information for five (5) years following termination or expiration of this Agreement for any reason; provided, however, if the Confidential Information rises to the level of a trade secret under applicable law, then such restriction shall remain in effect until such time as the information does not constitute a trade secret.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees must maintain the confidentiality of sensitive information related to the Face Foundrie system. This includes, but is not limited to, operating methods, business strategies, and data that gives Face Foundrie a competitive advantage. However, there are specific exceptions to this rule.
Confidential information excludes data that is already publicly known, information that Face Foundrie has voluntarily disclosed to the public, or information that the franchisee has independently developed or lawfully obtained without relying on disclosures from Face Foundrie. Additionally, information that enters the public domain through legal means is also excluded from confidentiality obligations. These exceptions ensure that franchisees are not unduly restricted from using information they have legitimately acquired through other sources.
Franchisees should be aware that the obligation to protect confidential information extends beyond the term of the franchise agreement. Specifically, the agreement states that the franchisee must maintain confidentiality for five years after the agreement terminates, unless the information qualifies as a trade secret under applicable law, in which case the restriction remains in effect as long as the information remains a trade secret. This long-term obligation highlights the importance of safeguarding Face Foundrie's proprietary information to protect the brand's competitive edge.