Does the Beauty Bungalows franchise agreement specify any exceptions to the prohibition on using Confidential Information after ceasing to be in a position with the Franchisee?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless the Company otherwise agrees in writing, I will disclose and/or use the Confidential Information only in connection with my duties as [INSERT TITLE] of the Franchisee, and will continue not to disclose any such information even after I cease to be in that position and will not use any such information even after I cease to be in that position unless I can demonstrate that such information has become generally known or easily accessible other than by the breach of an obligation of Franchisee under the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows FDD, individuals who have access to the company's confidential information are bound by confidentiality agreements, even after they are no longer in a position with the franchisee. However, there is an exception to this rule.
The confidentiality agreement states that individuals will continue not to disclose any confidential information even after they cease to be in that position and will not use any such information after they cease to be in that position unless they can demonstrate that such information has become generally known or easily accessible other than by the breach of an obligation of Franchisee under the Franchise Agreement.
In practical terms, this means that if information that was once confidential becomes public knowledge through means other than a breach of the franchise agreement, the former employee or franchisee is no longer obligated to keep that specific information confidential. This exception is fairly standard in franchise agreements, as it would be unreasonable to expect someone to keep information secret that is already widely known.