What level of diligence is required to maintain the confidentiality of All Team's Confidential Information?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall not, during the term of this Agreement, or after termination, expiration of the Agreement or Transfer, communicate or divulge to anyone, 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 ATFC may designate as confidential, including the Confidential Operations Manual, nor shall FRANCHISEE disclose or divulge in whole or in part any trade secrets or operating procedures of ATFC or its affiliates, customer lists, sales and promotional information, employee lists, financial information furnished or disclosed to FRANCHISEE by ATFC and any other information with respect of ATFC, unless such information is generally known and in the public domain, and except to the extent necessary to operate the Agency ("Confidential Information"). All employees of FRANCHISEE 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 this Agreement, and shall require all supervisory personnel to execute a Confidentiality and Non-Compete Agreement in a form acceptable to ATFC.
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, franchisees must exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all trade secrets and proprietary rights, both during and after the term of the Franchise Agreement. This obligation extends not only to the franchisee but also to their employees.
To ensure compliance, All Team requires that all supervisory personnel execute a Confidentiality and Non-Compete Agreement in a form acceptable to All Team. This agreement likely outlines the specific responsibilities and restrictions related to confidential information, providing a legal framework for protecting All Team's trade secrets.
This requirement highlights the importance All Team places on protecting its confidential information, which includes products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, clients, rates, fees, terms, the Confidential Operations Manual, trade secrets, operating procedures, customer lists, sales and promotional information, employee lists, and financial information. Franchisees should be prepared to implement robust measures to safeguard this information and ensure their employees understand and adhere to these confidentiality obligations.