What is excluded from the definition of 'Confidential Information' for a Lees Famous Recipe franchise?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
"Confidential Information" means the methods, techniques, formats, marketing and promotional techniques and procedures, specifications, information, recipes, Operations Manual (as defined in Section 7(E)), systems, and knowledge of and experience in the operation and franchising of Lee's Famous Recipe Restaurants that we communicate to you or that you otherwise acquire in operating the Restaurant under the System.
Any and all information, knowledge and know-how not publicly known about the Lee's Famous Recipe System and the Products, and the services, standards, procedures, techniques and such other information or material as we may designate as Confidential Information will be deemed confidential for purposes of this Agreement.
Confidential Information does not include information, processes or techniques that are generally known to the public, other than through disclosure (whether deliberate or inadvertent) by you.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, the definition of 'Confidential Information' excludes information, processes, or techniques that are generally known to the public. However, this exclusion does not apply if the franchisee discloses this information, whether deliberately or inadvertently. This means that while publicly available knowledge is not initially considered confidential, a franchisee's disclosure of any information related to the Lees Famous Recipe system, even if it is technically public, can still be a breach of confidentiality.
This exclusion is important for prospective franchisees because it clarifies the scope of what Lees Famous Recipe considers proprietary and protected. Franchisees must be careful not to disclose any information about the Lees Famous Recipe system, even if they believe it is already known to the public, as this could have legal ramifications.
Most franchise agreements contain similar clauses protecting confidential information, but the specific exclusions and the responsibility of the franchisee can vary. Therefore, prospective Lees Famous Recipe franchisees should carefully review the definition of 'Confidential Information' in the franchise agreement and seek legal counsel to fully understand their obligations.