What is the Associate's obligation regarding the disclosure of Apricot Lane's Confidential Information during the term of the Franchise Agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
(g) "Term" shall have the 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
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, an Associate is restricted from disclosing confidential information during the term and any renewal term of the Franchise Agreement. An Associate cannot publish, disclose, divulge, or communicate in any manner any of Apricot Lane's confidential information to any person or entity. They also cannot use the confidential information directly or indirectly for their own benefit or for the benefit of any entity other than Apricot Lane or the Franchise Business.
The FDD defines Trade Secrets as information, including customer lists, patterns, compilations, programs, devices, methods, techniques, or processes related to the Franchise Business. This information derives independent economic value from not being generally known and is subject to reasonable efforts to maintain its secrecy. The Associate acknowledges that the confidential information and trade secrets are unique and the exclusive property of Apricot Lane or its affiliates, and unauthorized disclosure would cause irreparable harm.
There are exceptions to these nondisclosure obligations. The restrictions do not apply to information that was already in the public domain, came into the public domain without the Associate's fault, or was already in the Associate's possession without any obligation of confidence. Additionally, disclosure is permitted if legally compelled in judicial or administrative proceedings, provided the Apricot Lane franchisor is notified beforehand and given the opportunity to obtain a protective order.