What action is the Covenantor required to take regarding materials containing Confidential Information for a Belocal franchise upon request or termination of their business relationship?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Covenantor will return and surrender any material containing any Confidential Information to Franchisee or Franchisor, upon request, or upon termination of Covenantor's business relationship with the Franchised Business.
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- Without limiting the foregoing in any way, Covenantor acknowledges that the Franchise Brand Standards Manual is Confidential Information; that Franchisor grants Franchisee, and therefore Covenantor, access to the Franchise Brand Standards Manual for limited purposes only; and that the Franchise Brand Standards Manual remains the property of Franchisor. Covenantor agrees that no Franchise Brand Standards Manual may be reproduced, in whole or in part, without Franchisor's written consent.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a Covenantor, which includes the franchisee, has specific obligations regarding confidential information. Upon request from either the franchisee or Belocal itself, or upon the termination of the business relationship, the Covenantor must return and surrender any material containing confidential information. This requirement ensures that Belocal's proprietary information remains protected, both during the franchise agreement and after its termination.
This obligation extends to various forms of confidential information, including but not limited to trademarks, trade names, service marks, trade secrets, research, plans, products, services, customer lists, supplier information, advertisers, business plans, marketing data and materials, software, electronic code, forms, processes, methods of operation, strategic information, financial information, and manuals. The Franchise Brand Standards Manual is specifically identified as Confidential Information, and it cannot be reproduced without Belocal's written consent.
For a prospective Belocal franchisee, this means that they must be diligent in protecting Belocal's confidential information and be prepared to return all related materials if the franchise agreement is terminated or upon request. Failure to comply with these requirements could result in legal action or other penalties. This is a standard practice in franchising, as franchisors need to protect their intellectual property and business methods.