After the Bumper Man Franchise Agreement terminates, expires, or is transferred, can franchisees use Confidential Information at all?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
We will disclose to you certain confidential or proprietary information and trade secrets. You and your personnel must maintain the confidentiality of all Confidential Information. Additionally, you and your principals agree not to communicate or use our Confidential Information for the benefit of anyone else during and after the term of the Franchise Agreement. You and your principals must also agree not to use our Confidential Information at all after the Franchise Agreement terminates, expires, or is transferred. You and your principals may disclose this Confidential Information only to personnel who need it to operate the Bumper Business, and in such case, such personnel must be bound to a confidentiality agreement with similar confidentiality covenants and obligations.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 31–32)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, franchisees and their principals are prohibited from using Bumper Man's Confidential Information at all after the Franchise Agreement terminates, expires, or is transferred. This restriction is in place to protect Bumper Man's proprietary assets and maintain a competitive advantage. Confidential Information encompasses a wide array of data, knowledge, and trade secrets related to the Bumper Man system. This includes, but is not limited to, the standards and specifications for operating a Bumper Business, the Manual, services, products, designs, devices, tools, pricing, technology, point of sale systems, computer software, advertising, marketing, promotional programs, and customer data.
This restriction extends beyond just the franchisee to include their principals, ensuring a comprehensive safeguard against the misuse of confidential information. Franchisees are permitted to disclose Confidential Information only to personnel who need it to operate the Bumper Business, provided that these personnel are bound by confidentiality agreements with similar covenants and obligations. This allows for the necessary sharing of information within the franchise unit while maintaining control over its dissemination.
The implications of this clause are significant for prospective franchisees. Upon termination, expiration, or transfer of the franchise agreement, the franchisee must cease all use of Bumper Man's Confidential Information. This includes refraining from using the information in any new business ventures or sharing it with competitors. Failure to comply with this provision could result in legal action from Bumper Man to protect its proprietary information. Therefore, it is crucial for franchisees to understand the scope of Confidential Information and the restrictions placed upon its use, both during and after the term of the franchise agreement.