What section of the agreement outlines the confidentiality obligations of the Floyds 99 franchisee regarding Licensed Methods?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee acknowledges that the Franchisor has valuable rights in and to such trade secrets.
The Franchisee further acknowledges that it has not acquired any right, title or interest in the Licensed Methods except for the right to use the Licensed Methods in the operation of the FLOYD'S 99 Shop as it is governed by this Agreement and that it is obligated to maintain the confidentiality of the Licensed Methods in accordance with Section 22.3 below.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisee's obligation to maintain the confidentiality of the Licensed Methods is detailed in Section 22.3 of the franchise agreement. The franchisee acknowledges that they have not acquired any right to the Licensed Methods except for the right to use them in the operation of the Floyds 99 shop as governed by the agreement.
This means that a Floyds 99 franchisee is entrusted with valuable trade secrets and operational methods that are crucial to the brand's success. They are permitted to use these methods solely for running their franchised shop, and they have a strict duty to keep this information confidential.
Failure to comply with this confidentiality clause could have serious repercussions, potentially leading to legal action from Floyds 99. This is a standard practice in franchising, as franchisors need to protect their intellectual property and maintain a consistent brand experience across all locations.