Does the confidentiality obligation for an individual under the Aplus agreement end when their relationship with the franchisee terminates?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- b) Individual's obligations under Section 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 a Franchised Business.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the confidentiality obligations for an individual who has signed a non-disclosure agreement with an Aplus franchisee do not end when their relationship with the franchisee terminates.
Specifically, the non-disclosure agreement requires that the individual not communicate or divulge any trade secrets or confidential information to any other person or entity, with the exception of the franchisee, both during and after their relationship with the franchisee. The individual must also take all necessary steps to ensure that confidential information and trade secrets are kept confidential, adhering to all applicable policies and procedures established by the franchisee.
Aplus is entitled to inform any future customer or employer of the individual about these obligations to protect its rights, regardless of whether the individual becomes involved in a franchised business as an investor, partner, or in any other capacity. This ensures that the confidentiality of Aplus's trade secrets and confidential information is maintained even after an individual's association with a franchisee ends.