Does the Face Foundrie franchise agreement specify how confidential information should be treated?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's business and operating methods and Confidential Information, disclosure and use of which would prejudice the interest of Franchisor and its franchisees and licensees of other Face Foundrié Facial Bars. Franchisee further understands and acknowledges the difficulty of ascertaining monetary damages and the irreparable harm that would result from breach of these covenants. If any part of this restriction is found to be unreasonable in scope, time or distance, such scope, time or distance may be reduced by appropriate order of the court to that deemed reasonable. Franchisor shall, as a matter of course, receive injunctive relief to enforce such covenants in addition to any other relief to which it may be entitled at law or in equity. Franchisor shall receive such injunctive relief without the necessity of posting bond or other security, such bond or other security being hereby waived.
7.02 Confidential Information.
- (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.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, the franchise agreement includes stipulations regarding the treatment of confidential information. Face Foundrie considers any information related to the System or the development and operation of Face Foundrié Facial Bars as confidential. This includes, but is not limited to, equipment, products, supplies, service execution methods, plans and specifications for the Facial Bars, sales and marketing programs, supplier identities, operating results, inventory control methods, computer systems, and any other information labeled as proprietary or confidential.
The agreement states that franchisees acknowledge that Face Foundrie and its affiliates have developed this confidential information at great expense, and it is not commonly known or available to the public. Franchisees are prohibited from disclosing or using this information for their own benefit or the benefit of others, unless required to fulfill their obligations under the Franchise Agreement or with express written approval from Face Foundrie. All confidential information remains the sole and exclusive property of Face Foundrie.
Furthermore, Face Foundrie emphasizes the difficulty of ascertaining monetary damages and the irreparable harm that would result from a breach of these confidentiality covenants. The agreement specifies that Face Foundrie is entitled to injunctive relief to enforce these covenants, without needing to post a bond or security. This highlights the importance Face Foundrie places on protecting its confidential information and the measures it can take to prevent its unauthorized use or disclosure.