Does the Floyds 99 franchisor consider the Licensed Methods to be confidential trade secrets?

According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisor considers its Licensed Methods to be confidential trade secrets. The FDD emphasizes that Floyds 99 owns and controls the distinctive plan for the establishment, operation, and promotion of its shops, including all related licensed methods of doing business. These methods encompass a wide range of elements, such as standards and specifications for the franchised site, premises, leasehold improvements, interior finish, interior décor, furnishings, equipment, products, product formulas, supplies, materials, inventory type and control, technical equipment standards, order fulfillment methods, client relations, marketing techniques, written promotional materials, advertising, accounting systems, and service delivery methods.

The FDD highlights that these Licensed Methods constitute confidential trade secrets of Floyds 99. As a franchisee, you acknowledge that the franchisor has valuable rights to these trade secrets and that your right to use them is limited to operating your Floyds 99 shop under the terms of the franchise agreement. You are obligated to maintain the confidentiality of these Licensed Methods.

This has significant implications for a prospective franchisee. It means you must protect the confidentiality of the Operations Manual and all the information contained within it. Unauthorized disclosure or use of this information could lead to legal action and significant financial penalties. Furthermore, the agreement restricts franchisees from using generative AI software that could potentially expose confidential information. Floyds 99 also retains the right to modify these methods, requiring franchisees to adapt to changes, reinforcing the importance of maintaining a strong relationship with the franchisor and staying updated on any modifications to the Operations Manual.