Does the All States M.E.D. franchisee have policies regarding Confidential Information and Trade Secrets that the individual must comply with?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
hall not include, however, any information that: (i) is now or subsequently becomes generally available to the public through no fault of Individual; (ii) Individual can demonstrate was rightfully in its possession, without obligation of nondisclosure, prior to disclosure according to this Agreement; (iii) is independently developed without the use of any Confidential Information; or (iv) is rightfully obtained from a third party who has the right, without obligation of nondisclosure, to transfer or disclose such information.
c) Any information expressly designated by Company or Franchisee as "Trade Secrets" or "Confidential Information" shall be deemed such for all purposes of this Agreement, but the absence of designation shall not relieve Individual of his or her obligations hereunder in respect of information otherwise constituting Trade Secrets or Confidential Information. Individual understands Franchisee's providing of access to the Trade Secrets and other Confidential Information creates a relationship of confidence and trust between Individual and Franchisee with respect to the Trade Secrets and other Confidential Information.
2. Confidentiality/Non-Disclosure
- a) Individual shall not communicate or divulge to (or use for the benefit of) any other person, firm, association, or corporation, with the sole exception of Franchisee, now or at any time in the future, any Trade Secrets or other Confidential Information. At all times from the date of this Agreement, Individual must take all steps reasonably necessary and/or requested by Franchisee to ensure that the Confidential Information and Trade Secrets are kept confidential according to the terms of this Agreement. Individual must comply with all applicable policies, procedures and practices that Franchisee has established and may establish from time to time with regard to the Confidential Information and Trade Secrets.
- 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.
3. Non-Competition
- a) During the term of Individual's relationship with Franchisee and for a period of two (2) years after the expiration or termination of Individual's relationship with Franchisee, regardless of the cause of expiration or termination, Individual shall not, directly or indirectly, divert or attempt to divert any business or customer of Franchisee or the Company to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Company's service mark "All States M.E.D." and such other trade names, trademarks, service marks, trade dress, designs, graphics, logos, emblems, insignia, fascia, slogans, drawings and other commercial symbols as the Company designates to be used in connection with All States M.E.D. or the Company's uniform standards, methods, procedures and specifications for the establishment and operation of an All States M.E.D. business.
- b) During the term of Individual's relationship with Franchisee and for a period of two (2) years thereafter, regardless of the cause of termination, Individual shall not, directly or indirectly, offer Competitive Business services anywhere within a TWENTY FIVE (25) mile radius of any All States M.E.D. location without the express written consent of Franchisee and the Company.
All States M.E.D. Franchise Agreement Schedule 2: Nondisclosure and Non-Compete Agreement
c) During the term of Individual's relationship with Franchisee and for a period of two (2) years thereafter, regardless of the cause of termination, Individual shall not, directly or indirectly, solicit or otherwise attempt to induce or influence any business associate of Franchisee, Company or any other All States M.E.D. Business to compete against, or terminate or modify his, her or its business relationship with, Franchisee, Company or any other All States M.E.D. Business.
4. Reasonableness of Restrictions
Individual acknowledges that each of the terms stated here, including the restrictive covenants, is fair and reasonable and is reasonably required for the protection of Franchisee, Company, and Company's Trade Secrets and other Confidential Information, the Company's business system, network of franchises and trade and service marks, and Individual waives any right to challenge these restrictions as being overly broad, unreasonable or otherwise unenforceable. If, however, a court of competent jurisdiction determines that any such restriction is unreasonable or unenforceable, then Individual shall submit to the reduction of any such activity, time period or geographic restriction necessary to enable the court to enforce such restrictions to the fullest extent permitted under applicable law. It is the desire and intent of the parties that the provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and public policies applied in any jurisdiction where enforcement is sought.
5. Relief for Breaches of Confidentiality, Non-Solicitation, and Non-Competition
Individual further acknowledges that an actual or threatened violation of the covenants contained in this Agreement will cause Franchisee and Company immediate and irreparable harm, damage and injury that cannot be fully compensated for by an award of damages or other remedies at law. Accordingly, Franchisee and/or Company shall be entitled, as a matter of right, to an injunction from any court of competent jurisdiction restraining any further violation by Individual of this Agreement without any requirement to show any actual damage or to post any bond or other security. Such right to an injunction shall be cumulative and in addition to, and not in limitation of, any other rights and remedies that Franchisee and Company may have at law or in equity.
6. Dispute Resolution
- a) Choice of Law. Except as to claims governed by federal law, the local law where the Franchised Business is located governs all claims that in any way relate to or arise out of this Agreement or any of the dealings of the parties ("Claims"). However, no laws regulating the sale of franchises or governing the relationship between franchisor and franchisee shall apply unless the jurisdictional requirements of such laws are met independently of this paragraph.
- b) Jurisdiction and Venue. You and we agree that venue and jurisdiction for any Claims, except those required to be submitted to arbitration, shall be proper solely in the state and federal court nearest to our corporate headquarters.
- c) Jury Waiver. In any trial between any of the parties as to any Claims, you and we agree to waive our rights to a jury trial and instead have such action tried by a judge.
- d) Class Action Waiver. You agree to bring any Claims, if at all, individually and you shall not join such claim with claims of any other person or entity or bring, join or participate in a class action against us.
- e) Punitive Damages Waiver. As to any Claims, you and we agree to waive our rights, if any, to seek or recover punitive damages.
All States M.E.D. Franchise Agreement Schedule 2: Nondisclosure and Non-Compete Agreement
- f) Limitation of Actions. You agree to bring any Claims against us, if at all, within one (1) year of the occurrence of the facts giving rise to such Claims, and that any action not brought within this period shall be barred as a claim, counterclaim, defense, or set-off.
- g) Prior Notice of Claims. As a condition precedent to commencing an action for a Claim, you must notify us within thirty (30) days after the occurrence of the violation or breach, and failure to timely give such notice shall preclude any claim for damages.
- h) Internal Dispute Resolution. You must first bring any Claim to our CEO, after providing notice as in Section 6(g) above. You must exhaust this internal dispute resolution procedure before you may bring your Claim before a third party.
- i) Mediation and Arbitration. Before you may bring any Claim against us court, you agree to try for a period of 60 days to mediate such claim before a mutually agreed to mediator in the city or county where our headquarters are located. If we cannot mutually agree on a mediator, you and we agree to use the mediation services of the American Arbitration Association ("AAA"), and split any AAA and mediator fees equally.
If mediation is unsuccessful and you decide to pursue a legal claim against us, you agree to bring such claim solely in binding arbitration conducted in the city or county of our headquarters in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. The proceedings will be held by a single arbitrator. The decision of the arbitrator will be final and binding upon the parties. Judgment upon the award rendered by the arbitrator may be entered in any court having personal and subject matter jurisdiction.
- j) Waiver of Bond. You agree that if we are forced to bring suit to enforce any provision of this Agreement, you agree to waive any requirement that we post bond to obtain a temporary, preliminary, or permanent injunction to enforce these duties.
- k) Attorney Fees. If we are the substantially prevailing party as to any Claims, you agree to reimburse our costs and attorney fees incurred in pursuing or defending the Claims.
7. Miscellaneous
- a) This Agreement constitutes the entire Agreement between the parties with respect to the subject matter hereof. This Agreement supersedes any prior agreements, negotiations and discussions between Individual and Franchisee.
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, franchisees are bound by strict policies regarding trade secrets and confidential information. All States M.E.D. designates information as "Trade Secrets" or "Confidential Information," and the absence of such designation does not relieve the franchisee of their obligations to protect such information. Franchisees must maintain the confidentiality of trade secrets and confidential information both during and after their relationship with All States M.E.D., regardless of the reason for termination. This obligation extends to taking all reasonably necessary steps to ensure confidentiality, as well as complying with all applicable policies, procedures, and practices established by All States M.E.D. regarding this information.
Trade secrets encompass a wide array of information related to the All States M.E.D. business, including materials, techniques, data, formulas, patterns, recipes, programs, devices, methods, techniques, drawings, processes, financial data, plans, passwords, and customer/supplier lists, that are not publicly known and provide economic value due to their secrecy. Confidential information includes technical and non-technical data used in or related to All States M.E.D., such as information in the Operations Manual and training materials, as well as any other information identified as confidential by All States M.E.D.. However, information that becomes publicly available through no fault of the franchisee, was rightfully in the franchisee's possession prior to disclosure, is independently developed, or is rightfully obtained from a third party without obligation of nondisclosure is excluded from confidential information.
All States M.E.D. requires franchisees to acknowledge that the franchisor will disclose trade secrets and confidential information during training, through the Operations Manual, and through ongoing guidance. Franchisees are granted the right to use this information solely for the operation of their franchised business. The franchisee must not use the trade secrets or confidential information in any other business or capacity, must maintain absolute confidentiality, must not make unauthorized copies, and must implement procedures to prevent unauthorized use or disclosure. Franchisees are also responsible for ensuring their employees, agents, and representatives comply with these confidentiality obligations and are liable for any unauthorized disclosures or use by them.
These measures ensure the protection of All States M.E.D.'s proprietary information and maintain a competitive advantage. Prospective franchisees should carefully review these confidentiality obligations and understand the potential liabilities associated with any unauthorized disclosure or use of trade secrets and confidential information.