Is the All States M.E.D. franchisee entitled to communicate an individual's confidentiality obligations to future customers or employers?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
- b) Individual's obligations under paragraph 2(a) of this Agreement shall continue in effect after termination of Individual's relationship with Franchisee, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary, and Franchisee is entitled to communicate Individual's obligations under this Agreement to any future customer or employer to the extent deemed necessary by Franchisee for protection of its rights hereunder and regardless of whether Individual or any of its affiliates or assigns becomes an investor, partner, joint venturer, broker, distributor or the like in an All States M.E.D. Business.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the franchisee does not have the right to communicate an individual's confidentiality obligations to future customers or employers. Instead, All States M.E.D. retains the right to communicate these obligations.
Specifically, the agreement states that All States M.E.D. is entitled to communicate an individual's confidentiality obligations to any future customer or employer. This communication is permissible to the extent All States M.E.D. deems it necessary to protect its rights under the agreement, regardless of whether the individual becomes involved with an All States M.E.D. business as an investor, partner, or in any other capacity.
This clause ensures that All States M.E.D. can safeguard its trade secrets and confidential information by informing relevant parties of the individual's ongoing obligations, even after their relationship with the franchisee has ended. It is the franchisor, All States M.E.D., who has the power to communicate these obligations, not the franchisee.