Are communications between the franchisor and franchisee of Pearce Bespoke considered Confidential Information?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidential Information includes (without limitation): all elements of the Business System and all products, services, equipment, technologies, policies, standards, requirements, criteria and procedures that now or in the future are part of the Business System; Franchisor's Operations Manual (including supplements to the Manual); all specifications, sources of supply, all procedures, systems, techniques and activities employed by Franchisor or Franchisee in the offer and sale of products and or services at the Pearce Bespoke Franchise; all pricing paradigms established by Franchisor or by Franchisee; all of Franchisor's and/or Franchisee's sources (or prospective sources) of supply and all information pertaining to same (including wholesale pricing structures, the contents of sourcing agreements and identity of suppliers); Franchisor's specifications, and Franchisee's final plans, for the construction, build-out, design, renovation, décor, equipment, signage, furniture, items and trade dress elements of the Pearce Bespoke Franchise; the identity of, and all information relating to, the computer and DRS POS hardware and software utilized by Franchisor and Franchisee; all information pertaining to Franchisor's and Franchisee's advertising, marketing, promotion and merchandising campaigns, activities, materials, specifications and procedures; all customer lists, customer data and other records generated and/or otherwise maintained by the Pearce Bespoke Franchise; Franchisor's Internet Code of Conduct, social media policy, internet/web protocols, procedures and content; Franchisor's training and other instruction programs and materials; all communications between Franchisor and Franchisee (including the financial and other reports Franchisee is required to submit to Franchisor under the Agreement); additions to, deletions from and modifications and variations of the components of the Business System and all other information, knowledge and know-how which Franchisor and its affiliates, now or in the future, designate as confidential.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, communications between the franchisor and franchisee are considered Confidential Information. This includes all communications, as well as the financial and other reports the franchisee is required to submit to the franchisor under the Franchise Agreement. This means that these communications are subject to the confidentiality provisions outlined in the agreement.
Pearce Bespoke franchisees and their personal guarantors must not disclose this Confidential Information to third parties, use it for their own benefit outside the scope of the franchise, or copy/reproduce it without authorization. Upon termination of the Franchise Agreement, the franchisee must return or destroy all Confidential Information as directed by Pearce Bespoke.
However, information that the franchisee can demonstrate was already known to them before disclosure by Pearce Bespoke, or that has become part of the public domain through no fault of the franchisee, is not considered Confidential Information. Franchisees are typically required to ensure their employees with access to Confidential Information also maintain its confidentiality through signed agreements. This is a fairly standard practice in franchising to protect the franchisor's proprietary business methods and information.