What is the Byrider Franchisee required to do if legally compelled to disclose Confidential Information?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee may also divulge such Confidential Information to a governmental authority in the event Franchisee becomes legally compelled or is required by regulatory authorities having appropriate jurisdiction to disclose such Confidential Information, provided that the Franchisee will promptly provide the Company with written notice so that the Company may seek, at its expense, a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if a franchisee is legally compelled by a governmental or regulatory authority to disclose confidential information, they must promptly provide written notice to Byrider. This allows Byrider to seek a protective order or another appropriate remedy at its own expense. Byrider also has the option to waive the franchisee's compliance with the confidentiality provisions outlined in the franchise agreement.
This requirement ensures that Byrider is aware of any potential disclosures of its confidential information and has the opportunity to protect its interests. By seeking a protective order, Byrider can attempt to limit the scope of the disclosure or ensure that the information is kept confidential even after it is disclosed. The franchisee's responsibility to provide prompt notice is crucial in allowing Byrider to take timely action.
This type of clause is common in franchise agreements to protect the franchisor's proprietary information while also acknowledging the franchisee's legal obligations. It balances the need for confidentiality with the franchisee's duty to comply with valid legal or regulatory demands. The franchisee is not expected to bear the costs of Byrider's legal actions to protect the information.
In practical terms, if a Byrider franchisee receives a subpoena or other legal demand requiring the disclosure of confidential information, they must immediately inform Byrider in writing. They should not disclose the information until Byrider has had the opportunity to respond and take appropriate action. Failure to notify Byrider promptly could result in a breach of the franchise agreement.