What is the Company's obligation to the Franchised Business regarding Confidential Information for Floyds 99?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.3 Confidentiality of Proprietary Information.
Developer and Franchisor acknowledge that the distinctive business format, plans, methods, data, processes, marketing systems, manuals, product formulas, techniques, designs, layouts, operating procedures, trademarks, proprietary marks and information and know-how of Franchisor which are developed and utilized in connection with the Licensed Methods are proprietary and confidential ("Confidential Information").
Such Confidential Information is unique, exclusive property and a trade secret of Franchisor and has valuable goodwill associated with it.
Developer acknowledges that any unauthorized disclosure or use of the Confidential Information would be wrongful and would cause irreparable injury and harm to Franchisor.
It is understood that Confidential Information is deemed to include, without limitation, clients lists, vendor lists, product formulas, any and all information contained in the Operations Manual (as described in the Franchise Agreement), and any information of whatever nature which gives Franchisor and its affiliates an opportunity to obtain an advantage over its competitors who do not have access to, know or use such lists, written materials, formulas or information.
Developer further acknowledges that Franchisor has expended a great amount of effort and money in obtaining and developing the Confidential Information, that Franchisor has taken numerous precautions to guard the secrecy of the Confidential Information, that it would be very costly for competitors to acquire or duplicate the Confidential Information and that any unauthorized disclosure of such Confidential Information shall cause irreparable harm to Franchisor.
Consequently, Developer shall not at any time, publish, disclose, divulge or in any manner communicate to any person, firm, corporation, association, partnership or any other entity whatsoever or use, directly or indirectly, for its own benefit or for the benefit of any person, firm, corporation or other entity other than for the use of Franchisor or the FLOYD'S 99 Shop(s) developed under this Agreement, any of the Confidential Information of Franchisor or its affiliates.
Franchisor and Developer agree that the Confidential Information does not include information that is generally available to the public.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the company places significant importance on protecting its Confidential Information. This information includes the brand's distinctive business format, plans, methods, data, processes, marketing systems, manuals, product formulas, techniques, designs, layouts, operating procedures, trademarks, proprietary marks, and know-how. Floyds 99 considers this Confidential Information to be its exclusive property and a valuable trade secret, essential to the brand's goodwill.
Floyds 99 emphasizes that unauthorized disclosure or use of its Confidential Information by a franchisee would be a wrongful act causing irreparable harm. The definition of Confidential Information extends to client lists, vendor lists, product formulas, the contents of the Operations Manual, and any information that provides Floyds 99 with a competitive advantage. The company highlights the substantial investment it has made in developing and safeguarding this information, noting the high costs that competitors would incur to acquire or duplicate it.
As a franchisee, you are prohibited from publishing, disclosing, or using Floyds 99's Confidential Information for your own benefit or the benefit of any entity other than Floyds 99 or its franchised shops. However, information that is generally available to the public is excluded from this confidentiality obligation. This obligation is designed to protect the Floyds 99 system and maintain its competitive edge in the market.