Who is required to maintain the absolute confidentiality of Alloy's proprietary information?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your Owners, officers, directors, shareholders, partners, members and managers (if any), jointly and severally, agree that at all times during and after the term of this Agreement, you will maintain the absolute confidentiality of all such proprietary information and will not disclose, copy, reproduce, sell or use any such information in any other business or in any manner not specifically authorized or approved in advance in writing by us. We may require that you obtain nondisclosure and confidentiality agreements in a form satisfactory to us from the individuals identified in the first sentence of this paragraph and other key employees.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the franchisee, their owners, officers, directors, shareholders, partners, members, and managers are all required to maintain the absolute confidentiality of Alloy's proprietary information. This obligation extends both during and after the term of the Franchise Agreement.
This means that a prospective Alloy franchisee must ensure that not only they themselves, but also all individuals involved in the ownership and management of the franchise, understand and agree to keep Alloy's confidential information strictly protected. This includes trade secrets, knowledge, methods, specifications, processes, procedures, improvements, and any proprietary information contained in the manuals or communicated by Alloy.
Alloy may also require the franchisee to obtain nondisclosure and confidentiality agreements from these individuals and other key employees. This is a common practice in franchising to protect the franchisor's intellectual property and trade secrets. The franchisee is responsible for ensuring that all relevant parties are aware of and comply with these confidentiality obligations, as breaches can lead to legal and financial repercussions.