What diligence level is required of Buildingstars employees to maintain confidentiality of trade secrets?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall not, during the term of this Agreement, or after the Transfer, termination or expiration, communicate or divulge to anyone, any information or knowledge concerning the products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, Customers, rates, fees and terms, databases, or such other information that gives BUILDINGSTARS' Affiliate, BUILDINGSTARS and FRANCHISEE a competitive advantage over those who do not know it, and other information or material which BUILDINGSTARS may designate as confidential, nor shall FRANCHISEE disclose or divulge in whole or in part any trade secrets or operating procedures of BUILDINGSTARS or its Affiliates, Customer lists, Customer contracts, sales and promotional information, employee lists, supplier and vendor information, information regarding real property management companies or commercial real estate owners affiliated with or related to any Customer, customer account, or any commercial real estate for which BUILDINGSTARS, its Affiliates, FRANCHISEE or any other franchisee has provided commercial cleaning services; pricing information; financial information furnished or disclosed to FRANCHISEE by BUILDINGSTARS or its Affiliates and any other information with respect to BUILDINGSTARS, unless such information is generally known and in the public domain, and except to the extent necessary to operate the Business ("Confidential Information"). FRANCHISEE will exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all trade secrets and proprietary rights during and after the term of this Agreement and will endeavor to insure that its employees will also comply.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 28)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees must exercise the highest degree of diligence to maintain the absolute confidentiality of all trade secrets and proprietary rights both during and after the term of the Franchise Agreement. Furthermore, the franchisee must endeavor to ensure that their employees also comply with these confidentiality requirements. This obligation extends to any information or knowledge concerning Buildingstars' products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, customers, rates, fees and terms, databases, or any other information that gives Buildingstars a competitive advantage.
This requirement means that a Buildingstars franchisee is not only responsible for keeping Buildingstars' confidential information secure themselves, but they also have to actively take steps to make sure their employees do the same. Practically, this could mean implementing training programs for employees, establishing clear confidentiality policies, and taking disciplinary action if an employee violates the confidentiality agreement. The franchisee's responsibility extends beyond the termination or expiration of the Franchise Agreement, meaning that these confidentiality obligations continue even after the franchisee is no longer part of the Buildingstars system.
This is a fairly standard requirement in franchising, as franchisors need to protect their trade secrets and confidential information to maintain a competitive edge. The specific measures a franchisee needs to take to ensure employee compliance will likely depend on the nature of the business and the type of employees they hire. However, the FDD makes it clear that Buildingstars franchisees have a high standard to meet when it comes to protecting the franchisor's confidential information.