Under what circumstances can the Confidential Information related to the Aplus Development Agreement be disclosed?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
I will comply with all of the provisions contained in Article 6 of the Development Agreement concerning the use of the Confidential Information.
I will maintain the confidentiality of all Confidential Information disclosed to me.
I agree to use the Confidential Information only for the purposes authorized under the Development Agreement.
I further agree not to disclose any of the Confidential Information, except (a) to the Developer's employees on a need to know basis, (b) to the Developer's and my legal and tax professionals to the extent necessary for me to meet my legal obligations, and (c) as otherwise may be required by law.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to the 2024 Aplus Franchise Disclosure Document, an individual who provides a Guaranty and Personal Undertaking related to a Development Agreement is bound by confidentiality obligations. This individual, often an Owner, agrees to protect the confidentiality of all Confidential Information disclosed to them.
Disclosure of Confidential Information is permitted only under specific conditions. First, disclosure can be made to the Developer's employees, but strictly on a need-to-know basis. Second, disclosure is allowed to the Developer's and the Owner's legal and tax professionals, but only to the extent necessary to fulfill legal obligations. Finally, disclosure is permitted if required by law.
These stipulations ensure that Aplus's sensitive business information remains protected while allowing for necessary operational and legal compliance. A prospective franchisee should be aware of these limitations and ensure they have systems in place to manage and protect confidential information accordingly.