Does Apricot Lane consider customer lists as part of its Trade Secrets?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, customer lists are explicitly considered Trade Secrets. The FDD defines "Trade Secret(s)" as information related to the Franchise Business that includes customer lists, patterns, compilations, programs, devices, methods, techniques, or processes. This information derives independent economic value from not being generally known and is subject to reasonable efforts to maintain its secrecy.
Associates of Apricot Lane, such as employees or managers, acknowledge that these Trade Secrets are unique and the exclusive property of Apricot Lane or its affiliates. Unauthorized disclosure or use of this information is considered wrongful and would cause irreparable harm to Apricot Lane. This acknowledgment highlights the importance Apricot Lane places on protecting its confidential information and the potential legal ramifications for associates who misuse or disclose it.
The agreement specifies that during the term of the Franchise Agreement and even after its termination, associates are prohibited from publishing, disclosing, or using any of the Trade Secrets for their own benefit or for the benefit of any entity other than Apricot Lane or the Franchise Business. This restriction underscores the ongoing obligation to protect Apricot Lane's Trade Secrets, reinforcing the brand's commitment to maintaining its competitive advantage through the confidentiality of its business information.
There are exceptions to disclosing confidential information, such as information already in the public domain or legally compelled disclosures in judicial or administrative proceedings, provided that Apricot Lane is notified and given the opportunity to obtain a protective order. However, these exceptions do not diminish the overall importance of maintaining the secrecy of Trade Secrets like customer lists, which are vital to the success and competitive positioning of Apricot Lane franchises.