Does the Apricot Lane franchise agreement define 'Trade Secret' to include a compilation?
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, the franchise agreement does define 'Trade Secret' to include a compilation. The agreement specifies that a 'Trade Secret' includes information such as customer lists, patterns, programs, devices, methods, techniques, or processes related to the franchise business.
This definition is important for prospective franchisees because it clarifies the scope of information that Apricot Lane considers proprietary and confidential. Franchisees are obligated to protect this information, which the franchisor considers to have economic value and takes measures to keep secret. Unauthorized disclosure or use of trade secrets could lead to legal repercussions and financial damages for the franchisee.
The agreement emphasizes that the franchisor has invested significant resources in developing these trade secrets and that they are unique to the Apricot Lane system. This highlights the importance of maintaining the confidentiality of this information both during the term of the franchise agreement and even after its termination. Franchisees must understand that this extends beyond just technical data to include compilations of information that contribute to the business's competitive advantage.
Furthermore, the agreement states that the value of the licensed information, including trade secrets, comes not only from the initial investment in its creation but also from its consistent use by all Apricot Lane franchisees. This underscores the interconnectedness of the franchise system and the importance of each franchisee safeguarding the trade secrets to maintain the overall value and integrity of the Apricot Lane brand.