Franchise agreements dictate the time and manner in which material information is to be communicated. Performance of the entire franchise enterprise, down to the performance of each franchisee, is directly related to the ability to communicate necessary information regarding new products and system standards. In Grosso Enterprises Inc. v. Domino’s Pizza , Senior U.S. District Judge Jan E. DuBois of the Eastern District of Pennsylvania was called upon to determine whether Domino’s educated its franchisee regarding its expectations sufficiently before seeking to terminate its franchise agreement.
Franchisors record their method of doing business in their operations manual. Franchisors possess certain proprietary and confidential information relating to the operation of their franchise system, which includes ingredients; formulas; recipes and methods of preparation; techniques; formats; specifications; systems; procedures; methods of business practices and management; sales and promotional techniques; and knowledge of, and experience in, the operation of the franchised business. Franchisors designate this information, this knowledge and these techniques as confidential. A copy of the manual is typically on loan to the franchisee for the term of the franchise.
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