Who owns the Confidential Information related to a Face Foundrie franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Face Foundrie's 2025 Franchise Disclosure Document, the franchisor, Face Foundrié Franchising L.L.C., retains sole and exclusive ownership of all Confidential Information related to the franchise system. This information, developed at great expense, is considered part of the System and is not publicly available.
The Confidential Information encompasses a wide array of proprietary assets, including but not limited to: equipment, products, service methods, facility plans, marketing strategies, supplier details, operational results, inventory control techniques, computer systems, and any other data labeled as confidential or reasonably expected to be treated as such. The Operations Manual, containing mandatory and suggested standards and procedures, is also presumed to be Confidential Information of Face Foundrie.
As a franchisee, you acknowledge that disclosing or using this Confidential Information for your own benefit or the benefit of others is strictly prohibited during the term of the Franchise Agreement. This restriction is in place to protect the interests of Face Foundrie and its franchisees, as unauthorized disclosure could cause significant harm. The agreement specifies that Face Foundrie is entitled to injunctive relief to enforce these confidentiality covenants, without needing to post a bond or security.
However, there are exceptions to this rule. Information that is already publicly known, voluntarily disclosed by Face Foundrie, independently developed by the franchisee, or lawfully obtained through other means is not considered Confidential Information. Franchisees should be aware of these exceptions but understand that the burden of proof would likely fall on them to demonstrate that information falls into one of these categories.