Is a Byrider franchisee allowed to disclose Confidential Information after termination of the franchise agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.16 Confidentiality. Except as required for Franchisee to conduct its regular daily business with the Company, Franchisee shall not at any time, either during or after termination of Franchisee's relationship with the Company, or in any way, disclose, disseminate, transfer and/or use, or permit anyone else to disclose, disseminate, transfer and/or use, any Confidential Information of the Company, and Franchisee shall retain all such information in trust for the sole use and benefit of the Company and/or its affiliates.
Franchisee acknowledges that the Confidential Information of the Company is valuable, special and unique to the Company's business and on which such business depends, and is proprietary to the Company and its affiliates, and that the Company has protected and wishes to continue to protect the Confidential Information by keeping it secret and confidential for the sole use and benefit of the Company and its affiliates.
Franchisee will take all steps necessary and all steps reasonably requested by the Company, to insure that all such Confidential Information is kept secret and confidential for the sole use and benefit of the Company and its affiliates.
In so doing, Franchisee shall require and represents that each of its employees, agents and representatives complies with each and every provision of this
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, franchisees are explicitly prohibited from disclosing Confidential Information, not only during the term of their agreement but also after its termination. The FDD states that franchisees must retain all Confidential Information in trust for the sole use and benefit of Byrider and its affiliates. This obligation extends to preventing anyone else from disclosing, disseminating, transferring, or using any Confidential Information. Franchisees must also take all necessary steps to ensure that Confidential Information remains secret and confidential.
This stringent confidentiality requirement is reinforced by the franchisee's acknowledgment that Byrider's Confidential Information is valuable, special, unique, and proprietary. The FDD emphasizes that Byrider's business depends on keeping this information secret. This underscores the importance Byrider places on protecting its trade secrets, know-how, methods, and procedures, which it considers essential to its business operations and competitive advantage.
The Franchise Agreement also stipulates that any violation of these confidentiality terms can be presumed to cause immediate and irreparable harm to Byrider, potentially leading to legal action, including injunctions. Furthermore, the franchisee's obligation to protect Confidential Information survives the termination or breach of the Franchise Agreement, ensuring long-term protection for Byrider's proprietary assets. This comprehensive approach to confidentiality is typical in franchising, where protecting trade secrets and proprietary information is crucial for maintaining brand integrity and competitive advantage.