What are the obligations of a Boulder Designs franchisee regarding the confidentiality of Trade Secrets and other Confidential Information during and after the term of the Agreement?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Confidential Information" means all technical and non-technical information used in or related to BOULDER DESIGNS Businesses including but not limited to current, former, and prospect client list and related information and not commonly known by or available to the public, including, without limitation, Trade Secrets, system standards and specifications, all information contained in the franchise manual, proprietary processing table with mailbox jig, texture mats and accessories, financial information, marketing data, vendor and supplier list, and all other knowledge and know-hows, and any other information identified as confidential when delivered by Franchisor.
Confidential Information shall not include, however, any information established by documentary evidence that: (a) is now or subsequently becomes generally available to the public through no fault of Franchisee; (b) Franchisee can demonstrate was rightfully in its possession, without obligation of nondisclosure, prior to disclosure pursuant to this Agreement; (c) is independently developed without the use of any Confidential Information; or (d) is rightfully obtained from a third party who has the right, without obligation of nondisclosure, to transfer or disclose such information;
TO THE FRANCHISE AGREEMENT
GUARANTY AND ASSUMPTION OF OBLIGATIONS
I have read the Franchise Agreement between BOULDER DESIGNS FRANCHISING, LLC and (the "Franchisee").
I own a beneficial interest in the Franchisee, and would be considered an "Owner" within the definition contained in Franchise Agreement.
I understand that, were it not for this Guaranty and Assumption of Obligation ("Guaranty"), Franchisor would not have agreed to enter into the Franchise Agreement with the Franchisee.
I will comply with all of the provisions contained in Article 7 of the Franchise Agreement concerning the use of the Confidential Information.
I will maintain the confidentiality of all Confidential Information disclosed to me.
I agree to use the Confidential Information only for the purposes authorized under the Franchise Agreement.
I further agree not to disclose any of the Confidential Information, except (a) to the Franchisee's employees on a need to know basis, (b) to the Franchisee's and my legal and tax professionals to the extent necessary for me to meet my legal obligations, and (c) as otherwise may be required by law.
While I am an "Owner" of the Franchisee and, for a two-year period after I cease to be an Owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first), I will not:
All ideas, concepts, know-how, techniques, advertising or materials concerning the System or developed, in whole or in part, using Trade Secrets or other Confidential Information, whether or not protectable intellectual property and whether created by or for Franchisee or its owners or employees, or other Covered
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees have strict obligations to maintain the confidentiality of trade secrets and other confidential information, both during and after the franchise agreement term. Confidential Information includes all technical and non-technical data related to the Boulder Designs business that isn't publicly known, such as client lists, system standards, the franchise manual, financial information, marketing data, and vendor lists. Franchisees must protect this information and can only use it as authorized under the Franchise Agreement.
The Franchise Agreement specifies that owners with a beneficial interest in the franchisee must also comply with the confidentiality provisions outlined in Article 7 of the Franchise Agreement. These individuals must maintain the confidentiality of all Confidential Information disclosed to them and use it only for authorized purposes. Disclosure is restricted to the franchisee's employees on a need-to-know basis, legal and tax professionals for meeting legal obligations, or as required by law.
Even after the franchise agreement terminates or expires, the franchisee's obligation to protect confidential information continues. Specifically, for a two-year period after ceasing to be an owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first), the owner cannot divert customers, harm goodwill, or employ individuals associated with Boulder Designs. This extended confidentiality and non-compete period ensures that trade secrets and confidential information remain protected, preventing unfair competition and safeguarding Boulder Designs' interests. The FDD also states that all ideas, concepts, know-how, techniques, advertising or materials concerning the System or developed, in whole or in part, using Trade Secrets or other Confidential Information, whether or not protectable intellectual property and whether created by or for Franchisee or its owners or employees, or other Covered Persons, shall be promptly disclosed to Franchisor and shall be deemed the sole and exclusive property of Franchisor and works made-for-hire for Franchisor, and no compensation shall be due to Franchisee or its owners or employees therefore.