What level of diligence is a Buildingstars franchisee required to exercise to maintain the confidentiality of trade secrets and proprietary rights?

According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee must exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all trade secrets and proprietary rights both during and after the term of the Franchise Agreement. This obligation extends to ensuring that their employees also comply with these confidentiality requirements.

This means a Buildingstars franchisee is not only responsible for their own actions in safeguarding confidential information but also for the actions of their employees. Practically, this requires implementing robust internal policies and training programs to educate employees about the importance of confidentiality and the specific measures they must take to protect Buildingstars's trade secrets and proprietary information.

The definition of confidential information is broad, encompassing various aspects of the Buildingstars business, including products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, customer data, rates, fees, terms, and databases. It also includes any information Buildingstars designates as confidential, trade secrets, operating procedures, customer lists, contracts, sales and promotional materials, employee lists, supplier and vendor information, and financial details. The franchisee's duty to protect this information extends indefinitely, even after the franchise agreement expires or is terminated.