What is a Byrider franchisee prohibited from doing with the company's Confidential Information?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ations, changes, additions, deletions and alterations, promptly, and at the franchisee's expense.
7.16 Confidential Information.
- A. The Franchisee acknowledges that its entire knowledge of the Confidential Information is derived from information disclosed to the Franchisee by the Company and that certain of such information is proprietary, confidential, unique, special, and a trade secret of the Company. 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.
- B. The Franchisee shall divulge such Confidential Information only to such of its employees and agents as must have access to it in order to operate the Franchisee's Business in accordance with this Agreement, including Franchisee's accountants, bankers and potential investors who sign a confidentiality agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are restricted from certain actions regarding the company's Confidential Information, both during and after their relationship with Byrider. Franchisees must maintain absolute confidentiality and are prohibited from using the Confidential Information in any other business or manner unless specifically authorized or approved in writing by Byrider. This restriction extends beyond the term of the franchise agreement.
The FDD specifies that franchisees can only share Confidential Information with employees and agents who need access to it for operating the Byrider business, including accountants, bankers, and potential investors, provided they sign a confidentiality agreement. Franchisees are also permitted to disclose Confidential Information to a governmental authority if legally compelled or required by regulatory authorities, but they must promptly notify Byrider in writing so the company can seek a protective order or waive compliance.
These confidentiality obligations highlight the importance Byrider places on protecting its proprietary information. Prospective franchisees should carefully consider these restrictions and ensure they have procedures in place to safeguard Confidential Information. Failure to comply with these obligations could result in legal action from Byrider.