What rights does a Boulder Designs franchisee acquire in the Trade Secrets or other Confidential Information?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
damages, or causes of action of any nature arising from, or in connection with, the installation, maintenance, or operation of the information system and its billing and payment processing.
Section 6.9 Ownership of Information
All of the information Franchisor or its affiliates obtain from Franchisee or about Franchisee's BOULDER DESIGNS franchise, and all information in Franchisee's records or Franchisors concerning the members of Franchisee's BOULDER DESIGNS franchise (the "Information") and all revenues we derive from the Information will be our property. However, Franchisee may at any time during the term of this Agreement use in the operation of Franchisee's BOULDER DESIGNS franchise (but for no other purpose), to the extent lawful and at Franchisee's sole risk and responsibility, any information that Franchisee acquire from third parties in operating Franchisee's BOULDER DESIGNS franchise, such as customer data. The Information (except for information Franchisee provides to the Franchisor or its affiliates, including information provided by Franchisee's officers, directors, shareholders, partners or equity members of
Franchisee entity) will become Franchisor property which Franchisor may use for any reason as Franchisor may deem necessary or appropriate in Franchisor's sole discretion. Franchisee hereby authorize Franchisee's any payment processors to release the information to the Franchisor at any time. Following termination or expiration of this Agreement, Franchisee will no longer use any of the Information, except to comply with Franchisee's post-term obligations under this Agreement and Franchisee authorizes Franchisee's payment processor to release the Information exclusively to the Franchisor and/or Franchisor's designees.
ARTICLE 7 - TRADE SECRETS AND OTHER CONFIDENTIAL INFORMATION
Section 7.1 Confidentiality of Trade Secrets and Other Confidential Information
Franchisee acknowledges Franchisor owns copyrights in the Manual, Franchisor's website (but not the domain names referred to above), and other copyrightable items that are part of the System. Franchisee acknowledges that while Franchisor claims copyrights in these and similar items, Franchisor has not registered, and is not required to register these copyrights with the United States Registrar of Copyrights. Franchisor shall disclose Trade Secrets and other Confidential Information to Franchisee during the training program, through the Manual, and as a result of guidance furnished to Franchisee during the term of this Agreement. Franchisee shall not acquire any interest in the Trade Secrets or other Confidential Information, other than the right to use it in the development and operation of the Franchised Business and in performing its duties during the term of this Agreement. Franchisee acknowledges that the use or duplication of the Trade Secrets or other Confidential Information in any other business venture would constitute an unfair method of competition. Franchisee acknowledges the Trade Secrets and other Confidential Information are proprietary and are disclosed to Franchisee solely on the condition that Franchisee and any Covered Person: (a) shall not use the Trade Secrets or other Confidential Information in any other business or capacity;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees have limited rights regarding the company's trade secrets and confidential information. While operating their Boulder Designs franchise, franchisees can use information acquired from third parties, such as customer data, at their own risk and responsibility, provided it's lawful. However, all information obtained from the franchisee or about their Boulder Designs franchise, including information in their records, becomes the property of the franchisor.
This information, except for what the franchisee directly provides, can be used by Boulder Designs for any reason they deem necessary. Upon termination or expiration of the franchise agreement, the franchisee loses the right to use any of this information, except to comply with post-term obligations. The franchisee also authorizes their payment processors to release this information exclusively to Boulder Designs.
Furthermore, franchisees must keep the contents of the manual, which contains trade secrets and other confidential information, strictly confidential during and after the term of the franchise agreement. They must ensure the manual is secure and only accessible to authorized personnel who have signed a confidentiality agreement. Franchisees cannot disclose, duplicate, or use any portion of the manual in an unauthorized manner, and they must protect Boulder Designs' intellectual property rights.