Is All Team's confidential information considered a trade secret?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Our Manual and other materials contain our confidential information (some of which constitutes trade secrets under applicable law). This information includes any information or knowledge concerning the products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, clients, rates, fees and terms and other information or material which we may designate as confidential, including customer lists, sales and promotional information, employee lists, financial information furnished or disclosed to you by us or our affiliates, unless such information is generally known and in the public domain, and except to the extent necessary to operate the Agency ("Confidential Information"). You will not use the confidential information in an unauthorized manner. You agree to exercise the highest degree of diligence and will make every effort to maintain the absolute confidentiality of all confidential information, trade secrets and proprietary rights during and after the term of the Franchise Agreement. All of your employees will exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all trade secrets and proprietary rights during and after the term of the Franchise Agreement, and will require all personnel to execute a Confidentiality and Non-Competition Agreement relating to trade secrets in a form acceptable to us.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 27)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, some of the confidential information contained in their manual and other materials is considered trade secrets under applicable law. This confidential information includes details about All Team's products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, clients, rates, fees, and terms. It also encompasses customer lists, sales and promotional information, employee lists, and financial information disclosed to the franchisee.
As an All Team franchisee, you are obligated to protect this confidential information. You must exercise a high degree of diligence to maintain the absolute confidentiality of all confidential information, trade secrets, and proprietary rights both during and after the term of the Franchise Agreement. This responsibility extends to all of your employees, who must also sign a Confidentiality and Non-Competition Agreement.
The FDD emphasizes that unauthorized use of confidential information is prohibited. This means you cannot use All Team's trade secrets or confidential information in any manner not explicitly authorized by the franchise agreement. This obligation to protect trade secrets is a common practice in franchising, as it safeguards the franchisor's competitive advantage and proprietary business methods.