What is the scope of the confidentiality obligation for Bevaris Alliance during the term of the agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
27.3 Confidentiality.
- (a) Each party undertakes that it shall not at any time or at any time during this agreement, and for a period of two years after termination of this agreement, disclose to any person any Confidential Information concerning the business, affairs, customers, clients or suppliers of the other party, except as permitted by clause 27.3(b).
- (b) Each party may disclose the other party's Confidential Information:
- (i) to its employees, officers, representatives, subcontractors or advisers who need to know such information for the purposes of exercising the party's right's or carrying out its obligations under this agreement. Each party shall ensure that its employees, officers, representatives, subcontractors or advisers to whom it discloses the other party's Confidential Information comply with this clause 27.3(b); and
- (ii) as may be required by law, a court of competent jurisdiction or any governmental or regulatory authority.
- (c) No party shall use any other party's Confidential Information for any purpose other than to exercise its rights and perform its obligations under or in connection with this agreement.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 FDD, Bevaris Alliance franchisees are bound by confidentiality obligations both during the term of the franchise agreement and for a period of two years after the agreement terminates. This means that franchisees must not disclose any Confidential Information regarding the business, affairs, customers, clients, or suppliers of the other party involved in the agreement.
The FDD specifies certain exceptions to this confidentiality. Franchisees are permitted to disclose Confidential Information to their employees, officers, representatives, subcontractors, or advisors who need to know the information to fulfill their obligations or exercise their rights under the franchise agreement. However, franchisees must ensure that these individuals also comply with the confidentiality clause. Disclosure is also allowed if required by law, a court of competent jurisdiction, or any governmental or regulatory authority.
Furthermore, Bevaris Alliance franchisees are prohibited from using any Confidential Information for purposes other than exercising their rights and performing their obligations as outlined in the franchise agreement. This clause aims to protect the franchisor's sensitive business information and maintain the integrity of the Bevaris Alliance system. This type of clause is standard in franchise agreements to protect the franchisor's intellectual property and trade secrets.