What section of the Face Foundrie agreement addresses the violation of confidential information?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
ay 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. 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. Franchisee also agrees that it and all of its Personnel will take appropriate steps to protect Confidential Information from any unauthorized disclosure, copying or use. At any time upon Franchisor's request, and in any event upon expiration or termination of this Agreement, Franchisee will immediately return any copies of documents where there are materials containing Confidential Information and will take appropriate steps to permanently delete and render unusable any Confidential Information stored electronically.
- 7.03 Data and Customers. In addition to the obligations set forth in Sections 7.01 and 7.02 above, Franchisee: (a) shall not reproduce, release or in any way make available or furnish, either directly or indirectly, to any person or Entity at any time, any information concerning the customers of Franchisee under this Agreement, which may be used to solicit sales from such customers including, but not limited to, the type of sales covered by this Agreement; (b) shall protect all said customer information from disclosure, destruction, loss or theft during the Term of this Agreement and until all copies of customer lists and copies of all other information concerning customers are turned over to Franchisor; (c) agrees not to use or permit to be used said information concerning Franchisee's customers in any manner except in the performance of this Agreement; and (d) shall at all times maintain any information, including lists, relating to the customers of Franchisee separate and distinct from any customer information Franchisee may maintain that is unrelated to this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Section 7 of the franchise agreement outlines the terms and conditions regarding confidential information. Specifically, section 7.02 addresses the franchisee's obligations concerning Face Foundrie's confidential information, stating that the franchisee cannot disclose or use any confidential information during the agreement, except to fulfill obligations under the agreement or with written approval from Face Foundrie. This obligation extends to restricted parties as well.
Face Foundrie defines confidential information as any non-public information related to the System or the development and operation of Face Foundrié Facial Bars that the franchisor discloses to the franchisee, or that by its nature would reasonably be expected to be held in confidence. This includes, but is not limited to, equipment, products, supplies, standards, procedures, protocols, methods of service execution, plans and specifications for the development of Face Foundrié Facial Bars, sales, marketing and advertising programs and techniques, identity of suppliers and knowledge of specifications, processes, procedures, equipment, and pricing. It also includes knowledge of operating results and financial performance of Face Foundrie or any Face Foundrié Facial Bars, methods of inventory control, product handling, training and management, computer systems, software programs and software applications used or useful in Face Foundrié Facial Bars, and any and all other information that Face Foundrie provides or makes available that is labeled proprietary or confidential or which by its nature or character would reasonably be expected to be required to be treated as confidential.
The agreement also states that all information that comprises the System including the information and data in the Operations Manual will be presumed to be Confidential Information of Face Foundrie. After the agreement terminates, the franchisee and restricted parties must continue to keep the information confidential for five years, unless the confidential information rises to the level of a trade secret under applicable law, in which case such restriction shall remain in effect until such time as the information does not constitute a trade secret. Franchisees must also take appropriate steps to protect Confidential Information from any unauthorized disclosure, copying or use. Upon termination or expiration of the agreement, the franchisee must return or destroy any confidential information.