What is a Buildingstars franchisee required to do to ensure their employees comply with the confidentiality requirements?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees must take specific actions to ensure their employees comply with confidentiality requirements. Buildingstars franchisees must exercise diligence to maintain the confidentiality of trade secrets and proprietary rights, and they must also endeavor to ensure that their employees comply with these confidentiality obligations. This includes not divulging any information concerning products, services, standards, techniques, sales, profit margins, marketing, expansion plans, customers, rates, fees, databases, or other information that provides a competitive advantage.
In practical terms, a Buildingstars franchisee needs to implement clear policies and procedures to protect confidential information. This may involve training employees on what constitutes confidential information, restricting access to sensitive data, and using confidentiality agreements with employees. Franchisees must actively monitor employee behavior and take corrective action if any breaches of confidentiality occur.
The responsibility for maintaining confidentiality extends beyond the term of the franchise agreement. Even after the agreement expires or is terminated, the franchisee is still obligated to protect Buildingstars's confidential information. This ongoing obligation highlights the importance of establishing a strong culture of confidentiality within the franchise and ensuring that all employees understand and adhere to these requirements.