What does Gold Star consider to be "Confidential Material"?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Gold Star asserts trade secret protection for information contained in the Manual and other information about its chili products, recipes and formulations, the System and the Business (the "Confidential Material"), and pursuant to the Franchise Agreement you agree that the Confidential Material constitutes proprietary highly confidential trade secrets and that you will not use any of the Confidential Material except as necessary in the operation of the Franchise business in accordance with the Franchise Agreement. You also agree that you will not disclose, duplicate, license, sell or reveal any of the Confidential Material to any person, other than disclosure to one or more of your employees to the extent that the employee is required by his/her work in accordance with the Franchise Agreement to be familiar with relevant Confidential Material. You agree to keep confidential the Confidential Material, to obtain from each of your partners, shareholders, officers, directors, employees and agents an agreement to keep and respect these confidences and to be responsible for compliance by all of those persons with those agreements.
You must advise Gold Star promptly in writing if you learn of any claims made regarding, or unauthorized use of, any Confidential Material, whether by a Related Party or a third party. Gold Star is not obligated to take any action, but may take any action it deems appropriate. Gold Star is not obligated to indemnify you for expenses or damages in a proceeding involving any of the Confidential Information.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 40–41)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Confidential Material includes information contained in the Manual and other information about its chili products, recipes and formulations, the System and the Business. Gold Star asserts trade secret protection for this Confidential Material.
As a franchisee, you must agree that the Confidential Material constitutes proprietary and highly confidential trade secrets. You are only allowed to use this material as necessary for operating the franchise business, and you must follow the Franchise Agreement. You cannot disclose, duplicate, license, sell, or reveal any of the Confidential Material to anyone, except to employees who need to know it for their work, and even then, only to the extent required by their job.
Gold Star requires you to keep the Confidential Material secure and to get agreements from your partners, shareholders, officers, directors, employees, and agents to maintain confidentiality. You are responsible for making sure these individuals comply with the confidentiality agreements. If you become aware of any claims or unauthorized use of the Confidential Material, whether by related parties or third parties, you must inform Gold Star promptly in writing. However, Gold Star is not obligated to take any action or to cover your expenses or damages in any legal proceedings involving the Confidential Information.