What is the focus of Section 7, 'Confidential Information/Improvements', in the Batteries Plus Bulbs Franchise Agreement?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
the Licensed Marks.
- F. Changes. Franchisee cannot make any changes or substitutions to the Licensed Marks unless Franchisor so directs in writing. Franchisor reserves the right, in its discretion, to modify or discontinue use of any Licensed Mark, or to use one or more additional or substitute trademarks or service marks. In such event, Franchisee will, at its expense, comply with such modification or substitution within a reasonable time after notice by Franchisor.
7. CONFIDENTIAL INFORMATION/IMPROVEMENTS
A. Confidential Information. Franchisee acknowledges and agrees that it does not acquire any interest in the Confidential Information, other than the right to use it in developing and operating the Store pursuant to this Agreement, and that the use or duplication of the Confidential Information in any other business constitutes an unfair method of competition. Franchisee acknowledges and agrees that the Confidential Information is proprietary and is disclosed to Franchisee solely on the condition that Franchisee agrees that it: (1) will not use the Confidential Information in any other business or capacity; (2) will maintain the absolute confidentiality of the Confidential Information during and after the term of this Agreement; (3) will not make unauthorized copies of any Confidential Information disclosed in written form; (4) will adopt and implement all reasonable procedures Franchisor directs to prevent unauthorized use or disclosure of the Confidential Information, including restrictions on disclosure to Store employees; and (5) will require all Store managers and other employees and agents with access to Confidential Information to sign a Confidentiality Agreement in a form Franchisor directs or approves. Notwithstanding the foregoing, Franchisor and Franchisee each own the Customer Data as further described in Section 4(D) above.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, Section 7 of the Franchise Agreement focuses on confidential information and improvements. This section emphasizes that franchisees do not acquire any ownership interest in the confidential information provided by Batteries Plus Bulbs, but only have the right to use it for operating their store. It explicitly states that using or duplicating this confidential information in any other business is considered unfair competition.
The agreement outlines several obligations for the franchisee regarding confidential information. These include maintaining absolute confidentiality during and after the franchise term, not using the information in any other business, avoiding unauthorized copies of written confidential information, implementing procedures to prevent unauthorized use or disclosure, and ensuring that all store managers and employees with access to confidential information sign a confidentiality agreement. However, Batteries Plus Bulbs and the franchisee both own the customer data as described in Section 4(D).
Furthermore, the franchisee is obligated to disclose fully and promptly to Batteries Plus Bulbs any ideas, concepts, methods, techniques, improvements, additions, and customer data related to the development, operation, or advertising of a Batteries Plus Bulbs store or the overall system. This also includes any new trade names, service marks, commercial symbols, or associated logos. These are collectively referred to as "Improvements." Batteries Plus Bulbs retains the right to use these improvements.