Does the definition of 'Trade Secret' for Monicals Pizza include customer lists?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- a) For the purposes of this Agreement, a "Trade Secret" is information in any form (including, but not limited to, materials and techniques, technical or non-technical data, formulas, recipes, patterns, compilations, programs, devices, methods, techniques, drawings, processes, financial data, financial plans, product plans, passwords, lists of actual or potential customers or suppliers) related to or used in Monical's Pizza Restaurants that is not commonly known by or available to the public and that information: (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the definition of "Trade Secret" does include customer lists. The FDD specifies that a Trade Secret encompasses information in any form related to Monical's Pizza restaurants that is not publicly known and provides economic value due to its secrecy.
Specifically, the definition includes "lists of actual or potential customers or suppliers" as an example of information that can be considered a Trade Secret. This means that Monicals Pizza considers its customer lists to be valuable and confidential information that gives them a competitive advantage.
As a franchisee, you would be obligated to protect the confidentiality of these customer lists and other Trade Secrets. This obligation extends beyond the termination of the franchise agreement, meaning you cannot use or disclose this information even after you are no longer a Monicals Pizza franchisee. This is a common practice in franchising, as franchisors need to protect their proprietary information to maintain the integrity of the brand and the competitive advantage of the franchise system.