To whom is 360 Painting expressly permitted to disclose information about a franchisee's 360 Painting business?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and each Bound Party agree that while this Agreement remains in effect such party will not, directly or indirectly, disclose or publish to any party, or copy or use for such party's own benefit, or for the benefit of any other party, any of Franchisor's proprietary or confidential information, except as required to carry out Franchisee's obligations under this Agreement or as Franchisor has otherwise expressly approved in writing.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting maintains strict control over its proprietary and confidential information. Franchisees acknowledge that this information, crucial to the 360 Painting system, is not publicly accessible and includes data within the Brand Standards Manual, as well as customer identities and contact details.
The FDD states that franchisees are prohibited from disclosing this confidential information to any party, directly or indirectly, for their own benefit or the benefit of others. The only exceptions to this are if disclosure is required to fulfill the franchisee's obligations under the Franchise Agreement or if 360 Painting has given explicit written approval for the disclosure. This restriction extends beyond the term of the agreement, lasting for five years after termination or expiration, and indefinitely if the information qualifies as a trade secret.
This policy ensures that 360 Painting can maintain its competitive edge and protect its business methods. Franchisees must take appropriate measures to safeguard this information from unauthorized access or use, including their employees and agents. Upon termination or expiration of the agreement, franchisees must return or destroy any documents containing confidential information.