Does the definition of 'Confidential Information' for Pearce Bespoke include customer data?
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 Pearce Bespoke's 2025 Franchise Disclosure Document, customer data is explicitly included within the definition of 'Confidential Information.' This means that any customer lists, customer data, and other records generated or maintained by the Pearce Bespoke franchise are considered confidential. This classification places significant restrictions on how a franchisee can use, share, or disclose this information.
The FDD specifies that franchisees must not copy, reproduce, or share any Confidential Information, including customer lists, with third parties. Upon termination of the Franchise Agreement, franchisees are obligated to return or destroy all Confidential Information, including customer lists and records, as directed by Pearce Bespoke. The FDD also states that all customer lists or information gathered by the Pearce Bespoke Franchise are the property of the franchisor, not the franchisee, and Pearce Bespoke has the right to use this information for marketing purposes, even after the agreement ends.
Pearce Bespoke may maintain or require the franchisee to maintain a current listing of customer information, such as names, addresses, ages, and activity statistics, subject to local data privacy laws and approved technologies. Franchisees may be required to use approved contact management software and provide this data electronically on a monthly basis. This data is owned exclusively by Pearce Bespoke and considered its proprietary and Confidential Information. Franchisees are only licensed to use this data for operating their Pearce Bespoke Franchise, and this license terminates upon expiration or termination of the agreement. Franchisees must also ensure that their employees with access to Confidential Information sign confidentiality agreements.
This has several implications for a prospective Pearce Bespoke franchisee. They must implement strict data protection measures to safeguard customer information. They must also understand that the customer data they collect is ultimately owned by Pearce Bespoke, which can use it for its own marketing purposes. Furthermore, upon termination of the franchise agreement, the franchisee loses the right to use this data and must transfer or destroy it as instructed by Pearce Bespoke. This is a common practice in franchising, as it protects the franchisor's brand and customer relationships.