What is the 'Associate' agreeing to in relation to Apricot Lane's Confidential Information and Trade Secrets?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
meaning defined in the Franchise Agreement.
- (h) "Trade Secret(s)" shall mean information, including a customer lists, pattern, compilation, program, device, method, technique or process related to the Franchise Business that both derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
- 2. Confidential Information and Trade Secrets. Associate and the Franchisor acknowledge that the Confidential Information and Trade Secrets that are developed and utilized in connection with the operation of the Franchise Business is unique and the exclusive property of the Franchisor or its affiliates. Associate acknowledges that any unauthorized disclosure or use of the Confidential Information and Trade Secrets would be wrongful and would cause irreparable injury and harm to the Franchisor or its affiliates. Associate further acknowledges that the Franchisor or its affiliates has expended a great amount of effort and money in obtaining and developing the Confidential Information and Trade Secrets, that the Franchisor or its affiliates has taken numerous precautions to guard the secrecy of the Confidential Information and Trade Secrets, and that it would be very costly for competitors to acquire or duplicate the Confidential Information and Trade Secrets.
- 3. Nondisclosure of Confidential Information. During the Term and any renewal Term of the Franchise Agreement and for all periods after the Term and any renewal Term of the Franchise Agreement, Associate shall not at any time, publish, disclose, divulge or in any manner communicate . to any person, firm, corporation, association, partnership or any other entity whatsoever or use, directly or indirectly, for its own benefit or for the benefit of any person, firm, corporation or other entity other than for the use of the Franchisor or the Franchise Business, any of the Confidential Information of the Franchisor or its affiliates.
- 4. Exceptions to Disclosing Confidential Information. Notwithstanding the foregoing, the restrictions on the disclosure and use of the Confidential Information will not apply to the following: (a) information that was in the public domain prior to being communicated to Associate through no fault of Associate; (b) information that entered the public domain after it was Communicated to Associate through no fault of Associate; (c) information that was in Associate's possession free of any obligation of confidence at the time it was communicated to Associate; or (d) the disclosure of the Confidential Information in judicial or administrative proceedings to the extent that Associate is legally compelled to disclose the information, if Associate has notified the Franchisor before disclosure and used Associate's best efforts, and afforded the
Franchisor the opportunity, to obtain an appropriate protective order or other assurance satisfactory to the Franchisor of confidential treatment for the information required to be so disclosed.
- 5. Nondisclosure of Trade Secrets. During the Term and any renewal Term of the Franchise Agreement and for as long as such information constitutes a Trade Secret, Associate shall not at any time, publish, disclose, divulge or in any manner communicate to any person, firm, corporation, association, partnership or any other entity whatsoever or use, directly or indirectly, for its own benefit or for the benefit of any person, firm, corporation or other entity other than for the use of the Franchisor or the Franchise Business, any of the Trade Secrets of the Franchisor or its affiliates.
- **6.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, an 'Associate' agrees to several conditions regarding the brand's Confidential Information and Trade Secrets. The Associate acknowledges that this information is unique, exclusive property of Apricot Lane or its affiliates, and that unauthorized disclosure or use would cause irreparable harm to Apricot Lane. The Associate also recognizes that Apricot Lane has invested significant resources in developing and protecting this information, making it costly for competitors to acquire or duplicate.
During the term and any renewal term of the Franchise Agreement, and even after termination, the Associate agrees not to publish, disclose, divulge, or communicate Apricot Lane's Confidential Information to any third party. They also agree not to use this information directly or indirectly for their own benefit or for the benefit of any entity other than Apricot Lane or the Franchise Business. This restriction aims to protect Apricot Lane's competitive advantage and the value of its business system.
However, there are exceptions to these nondisclosure obligations. The restrictions do not apply to information that was already in the public domain, or came into the public domain through no fault of the Associate. It also doesn't apply to information the Associate possessed without any confidentiality obligation prior to its communication by Apricot Lane. Furthermore, disclosure is permitted if legally compelled in judicial or administrative proceedings, provided the Associate notifies Apricot Lane beforehand and makes a reasonable effort to obtain a protective order to maintain confidentiality.
In addition to the confidentiality obligations, the Associate also agrees to a non-competition covenant. During the term and any renewal term of the Franchise Agreement, the Associate cannot have a direct or indirect controlling interest in a Competitive Business, perform services for a Competitive Business, or divert business or employees from the Franchised Business to a Competitive Business. This non-competition agreement extends for two years after termination or expiration of the Franchise Agreement, preventing the Associate from engaging in a similar business that would compete with Apricot Lane.