After termination of an individual's relationship with Aplus, do the obligations regarding Trade Secrets and Confidential Information continue?
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, an individual's obligations regarding Trade Secrets and Confidential Information extend beyond the termination of their relationship with the franchisee. Specifically, these obligations remain in effect regardless of the reason for termination, whether it is voluntary or involuntary.
This means that even after an individual's association with an Aplus franchise ends, they are still legally bound to protect and not disclose any Trade Secrets or Confidential Information they acquired during their time with the franchise. This includes technical and non-technical information related to the Aplus or Sunoco franchised business that is not publicly known. The franchisee is also entitled to inform any future customer or employer of the individual about these obligations to protect its rights.
This provision is designed to safeguard Aplus's proprietary information and maintain its competitive advantage. Prospective franchisees should understand that any employees or individuals associated with their franchise will be subject to these ongoing confidentiality obligations, and they must ensure that these individuals are aware of and comply with these terms. This is a standard practice in franchising to protect the franchisor's intellectual property and business methods.