What is considered 'Confidential Information' related to the Aplus franchised business?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Confidential Information" means technical and non-technical information used in or related to the APLUS and/or SUNOCO Franchised Business and not commonly known by or available to the public, including, without limitation, Trade Secrets, methods and products, customer services techniques and other techniques and methodologies not generally known to the industry or public, and any other information identified or labeled as confidential when delivered by Franchisor.
Confidential Information shall not include, however, any information that: (a) is now or subsequently becomes generally available to the public through no fault of Franchisee; (b) Franchisee can demonstrate was rightfully in its possession, without obligation of nondisclosure, prior to disclosure pursuant to this Agreement; (c) is independently developed without the use of any Confidential Information; or (d) is rightfully obtained from a third party who has the right, without obligation of nondisclosure, to transfer or disclose such information.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Confidential Information encompasses technical and non-technical data utilized in or pertaining to the Aplus and/or SUNOCO Franchised Business that is not publicly accessible. This includes, but is not limited to, trade secrets, methodologies, products, customer service techniques, and other approaches not widely known in the industry or to the general public. Any information explicitly designated or labeled as confidential by Aplus also falls under this category.
However, certain types of information are excluded from the definition of Confidential Information. This includes data that becomes publicly available through no fault of the franchisee, information the franchisee rightfully possessed before the agreement without any obligation to keep it secret, information independently developed by the franchisee without using any confidential information from Aplus, and information rightfully obtained from a third party who has the right to disclose it without any restrictions.
For a prospective Aplus franchisee, understanding what constitutes Confidential Information is crucial. Franchisees are responsible for maintaining the confidentiality of this information and ensuring that their employees, agents, and representatives also adhere to these confidentiality obligations. Unauthorized use or disclosure of Confidential Information can lead to legal repercussions and financial liabilities for the franchisee. Therefore, franchisees must implement reasonable procedures to prevent unauthorized access or disclosure, as prescribed by Aplus.