Is a Byrider franchisee allowed to use the confidential information in any other business without written authorization from the company?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee and its owners agree that they will maintain the absolute confidentiality of all such Confidential Information during and after the Term and that they will not use any such Confidential Information in any other business or in any manner unless specifically authorized or approved in writing by the Company.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are prohibited from using confidential information in any other business or manner unless they receive specific written authorization or approval from Byrider. This restriction applies both during the term of the franchise agreement and after its termination. The FDD defines "Confidential Information" broadly to include all confidential and/or secret information concerning Byrider, the franchisee's business, or the System, including customer lists, marketing methods, business forms, costs, prices, and trade secrets. This information is considered proprietary and a trade secret of Byrider.
The FDD specifies that franchisees may only share confidential information with employees and agents who need access to it for operating the Byrider business, and even then, these individuals may be required to sign confidentiality agreements. Disclosure to governmental authorities is permitted if legally compelled, but Byrider must be promptly notified so it can seek a protective order or waive compliance.
This strict confidentiality requirement is typical in franchising to protect the franchisor's proprietary business methods and trade secrets. A prospective Byrider franchisee should understand the scope of the confidential information and the limitations on its use, as unauthorized use could lead to legal action and damages.