Does the confidentiality obligation for Boulder Designs continue after the individual's relationship with the Franchisee ends, and if so, under what conditions?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Individual shall not whether in person, in writing, through the Internet or online through Social Media sites and/or applications communicate or divulge to (or use for the benefit of) any other person, firm, association, or corporation, with the sole exception of Franchisee, now or at any time in the future, any of the Company's Trade Secrets or Confidential Information.
Individual's obligations under paragraph 4(a) of this Agreement shall continue in effect after termination of Individual's relationship with Franchisee as an employee, agent, officer, director, executive, manager or member of Franchisee or a holder of a legal or beneficial interest in Franchisee, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary, and Individual shall (and Franchisee is entitled to) communicate Individual's obligations under this Agreement to any future customer or employer of Individual to the extent deemed necessary by Franchisee for protection of Franchisee's rights and obligations herein.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, an individual's confidentiality obligations extend beyond the termination of their relationship with the franchisee. Specifically, the agreement states that the individual is prohibited from communicating or divulging any of the company's trade secrets or confidential information to any other person, firm, association, or corporation, except for the franchisee, both during and after their association with the franchisee. This obligation remains in effect regardless of the reason for termination, whether voluntary or involuntary, and irrespective of the individual's role (employee, agent, officer, director, executive, manager, member, or holder of a legal or beneficial interest).
This extended confidentiality obligation has significant implications for individuals associated with a Boulder Designs franchise. Even after leaving the franchise, they must maintain the confidentiality of Boulder Designs' trade secrets and confidential information. The franchisee is also entitled to inform any future customer or employer of the individual about these obligations, ensuring the protection of the franchisee's rights and obligations. This clause is designed to safeguard Boulder Designs' proprietary information and maintain its competitive advantage.
For a prospective franchisee, this highlights the importance of thoroughly understanding and communicating these confidentiality terms to all individuals working within their franchise. It also underscores the need to implement robust internal controls to protect confidential information and trade secrets. The franchisor's right to enforce these confidentiality obligations, even after an individual's relationship with the franchisee has ended, demonstrates the seriousness with which Boulder Designs protects its intellectual property and business methods.