What is the Byrider Franchisee's obligation regarding confidential information covenants for their employees and agents?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Furthermore, the Franchisee agrees that all employees and agents of the Franchisee having
access to the confidential and proprietary information of the Company shall be required to execute confidential information covenants in a form acceptable to the Company.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, franchisees must ensure that all employees and agents with access to Byrider's confidential and proprietary information sign confidential information covenants. These covenants must be in a form acceptable to Byrider. This requirement aims to protect Byrider's sensitive business data and trade secrets.
This obligation means that a Byrider franchisee needs to have a system in place to identify which employees and agents have access to confidential information. They must also ensure that these individuals execute the necessary confidentiality agreements. The franchisee bears the responsibility of enforcing these covenants and ensuring compliance.
Failure to secure these agreements could expose the franchisee to potential liability if confidential information is compromised. Byrider retains the right to determine what form of confidentiality agreement is acceptable, so franchisees must use the forms provided or approved by Byrider. This requirement is typical in franchising, as franchisors need to maintain tight control over their proprietary information to protect their brand and competitive advantage.