What is the Byrider Franchisee's obligation regarding the confidentiality of Confidential Information after the term of the franchise agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
17.1 Obligations. In the event of the termination or expiration of this Agreement, whether by reason of default, lapse of time or other cause, the Franchisee shall: (A) promptly pay all amounts owed to the Company; (B) promptly return to the Company the Manual and other confidential materials including, without limitation, all the BYRIDER Computer Software; (C) maintain confidentiality of all proprietary and Confidential Information furnished by the Company; (D) immediately cease using any of the Marks except as provided for herein; (E) immediately make all alterations to the building facilities and exterior signs at the Business Location to distinguish them from the appearance and identity of a Business; if the Franchisee shall fail or refuse to make or cause such changes to be made, the Company, without prejudice to its other rights and remedies, may enter upon the Business Location, forcibly if necessary, without being guilty of trespass or any other tort, and make such changes at the Franchisee's expense except as provided for herein; (F) within thirty (30) days after the termination or expiration of this Agreement, cancel all Byrider telephone listings, numbers and directory advertising, and, if required by the Company, direct the transfer of the same to the Company or on its order; (G) take such actions as may be necessary or desirable to assign to the Company or the Company's designee any Internet domain names, assumed name, rights or equivalent registration which contain the Marks, including, without limitation, any slogans used by the Company, within thirty (30) days after the termination or expiration of this Agreement; (H) comply with all covenants contained in Article XVIII herein; (I) pay all costs, including attorneys' fees, incurred by the Company in terminating this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee must maintain the confidentiality of all proprietary and Confidential Information furnished by Byrider. This obligation extends beyond the term of the agreement, meaning that even after the franchise relationship ends, the franchisee is legally bound to protect Byrider's sensitive information. This includes the BYRIDER Computer Software.
This requirement is typical in franchising, as franchisors need to protect their trade secrets, operational methods, and other confidential information to maintain a competitive advantage. For a prospective Byrider franchisee, this means understanding that the duty of confidentiality survives the end of the franchise term.
Failure to uphold this obligation could result in legal action by Byrider to protect its Confidential Information. The franchisee's responsibility includes not only refraining from disclosing the information themselves but also taking appropriate measures to prevent unauthorized access or disclosure by others. This enduring confidentiality obligation is a significant aspect of the franchise agreement that all franchisees should carefully consider.