What is the condition regarding confidentiality agreements when a Marble Slab Creamery franchisee proposes an assignment?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may not disclose any confidential information to any proposed transferee unless it shall first have obtained, and provided Franchisor with an executed original copy of, a confidentiality agreement in form prescribed or approved by Franchisor, naming Franchisor as an express intended third party beneficiary thereto.
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, a franchisee is restricted from disclosing confidential information to any potential transferee during a proposed assignment. To do so, the franchisee must first obtain a confidentiality agreement. This agreement must be in a format that is either prescribed or approved by Marble Slab Creamery.
This confidentiality agreement must explicitly name Marble Slab Creamery as a third-party beneficiary. This provision ensures that Marble Slab Creamery has the legal right to enforce the confidentiality agreement directly against the transferee, should the transferee misuse the confidential information.
This requirement protects Marble Slab Creamery's proprietary information and trade secrets during franchise transfers. It ensures that potential buyers are bound by confidentiality obligations, preventing unauthorized use or disclosure of sensitive business data, even if the assignment does not proceed.