Who owns the Confidential Information related to the 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.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the franchisor, along with its affiliates, has developed confidential information at great expense that is part of the Face Foundrie system and not publicly available. The Franchise Agreement specifies that all confidential information related to the Face Foundrie Facial Bars is the sole and exclusive property of the franchisor. This encompasses various aspects of the business, including operational methods, marketing strategies, supplier details, and financial performance data.
This means that as a Face Foundrie franchisee, you are granted access to this confidential information solely for the purpose of operating your franchised location according to the Franchise Agreement. You are explicitly prohibited from disclosing, publishing, copying, or using this information for your own benefit or the benefit of any other person or entity, unless expressly approved in writing by Face Foundrie. This restriction remains in effect throughout the term of the Franchise Agreement.
There are a few exceptions to this rule. Information that is already publicly known, voluntarily disclosed by Face Foundrie, independently developed or lawfully obtained by the franchisee, or has entered the public domain through lawful means is not considered confidential. However, it is crucial for a prospective franchisee to understand the breadth of information considered confidential and the restrictions placed on its use to avoid potential breaches of the Franchise Agreement.
This clause is typical in franchise agreements to protect the brand's proprietary information and maintain a competitive advantage. Franchisees should carefully review the definition of "Confidential Information" in the Franchise Agreement and seek legal counsel to fully understand their obligations.