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Management Studies

Question: I Can't Believe It's Yogurt (ICBIY), a frozen yogurt company, required potential franchise owners to attend "Yogurt University"-a training program designed to teach owners how to run an ICBIY store. In addition to teaching potential owners how to mix and freeze yogurt, Yogurt University also teaches potential owners how to structure the store. ICBIY claimed that particular floor tile patterns move customers through the store more efficiently. In addition, ICBIY used certain paint color schemes, logos, menu boards, windows, and common business marketing practices to distinguish an ICBIY store and improve business results.

ICBIY considered these store designs and practices to be trade secrets. However, ICBIY did not require potential owners to sign a confidentiality agreement until the individual signed a franchise agreement. Gunn attended Yogurt University, became a franchisee, and set up his store. Irregular yogurt shipments from ICBIY and late payments of franchise royalties by Gunn created a rocky relationship between the parties, however. Eventually, ICBIY canceled Gunn's franchise. Gunn continued to use ICBIY's logo and trade secret information in his business. ICBIY sued Gunn for trade secret misappropriation. Should ICBIY win? Why, or why not?

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Management Theories, Management Studies

Category:- Management Theories
Reference No.:- M92281935

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