factual

What steps is a Byrider franchisee required to take to protect Confidential Information?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

altering the programs, services, methods, standards, equipment, decorations, policies and procedures of the System; B) add to, delete from, or modify those programs and services which the Business is authorized to offer; and C) change, improve or modify the Marks. The Franchisee agrees to make any such modifications, 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. 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. Any and all information, knowledge, and know-how including, without limitation, materials, technology systems, techniques, and other data, which the Company designates as confidential shall be deemed confidential for purposes of this Agreement, except information which the Franchisee can demonstrate came to its attention prior to the disclosure thereof by the Company or which, at the time of disclosure by the Company to the Franchisee, had become a part of the public domain through publication or communication by others without Franchisee's fault or involvement; or which after disclosure to the Franchisee by the Company, becomes a part of the public domain through publication or communication by others without Franchisee's fault or involvement.
  • C. Due to the special and unique nature of the proprietary and Confidential Information, the Marks, and the Manual, the Franchisee hereby agrees that the Company shall be entitled to immediate equitable remedies including, but not limited to, restraining orders and injunctive relief in order to safeguard any proprietary, confidential, unique and special information of the Company and that money damages alone would be an insufficient remedy with which to compensate the Company for any breach of the terms of Article XVIII and Sections 6.3 and 7.16 hereof. 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.

  • 7.17 Service Center Operations. The Franchisee must operate a Service Center at the Business Location. The Franchisee may only provide repair service for vehicles purchased from Businesses, unless the Company approves in writing for the Franchisee to service the general public. Notwithstanding the foregoing, the Franchisee will not be required to operate a Service Center at the Business Location so long as the Franchisee or its affiliate operates a Service Center at another Business under a franchise agreement with the Company and the Company determines in its sole discretion that such Service Center is located within a reasonable distance to service customers of the Franchisee.
  • 7.18 Information Security. The Franchisee must implement all administrative, physical and technical safeguards necessary to protect any information that can be used to identify an individual, including names, addresses, telephone numbers, e-mail addresses, employee identification numbers, signatures, passwords, financial information, credit card information, biometric or health data, government-issued identification numbers and credit report information ("Personal Information") in accordance with applicable law and industry best practices. It is entirely the Franchisee's responsibility (even if the Company provides the Franchisee with any assistance or guidance in that regard) to confirm that the safeguards the Franchisee uses to protect Personal Information comply with all applicable laws and industry best practices related to the collection, access, use, storage, disposal and disclosure of Personal Information. If Franchisee becomes aware of a suspected or actual breach of security or unauthorized access involving Personal Information, the Franchisee will notify the Company immediately and specify the extent to which Personal Information was compromised or disclosed. The Franchisee also agrees to follow the Company's instructions regarding curative actions and public statements relating to the breach. The Franchisee must comply with the Company's privacy policy, as it may be amended periodically. The Franchisee further agrees to comply with any requests to return or delete Personal Information, whether requested by the Company or directly by a consumer, as required by applicable data sharing and privacy laws**.**

ARTICLE VIII

TRADEMARKS

  • 8.1 Ownership. The Franchisee acknowledges the validity of the Marks and that they are the sole property of the Company. The Franchisee's right to use the Marks is derived solely from this Agreement and is limited to the conduct of the Franchisee's Business by the Franchisee pursuant to and in compliance with this Agreement and all applicable standards, specifications and operating procedures prescribed by the Company from time to time. Any unauthorized use of the Marks by the Franchisee is a breach of this Agreement and an infringement of the rights of the Company. All usage of the Marks by the Franchisee and any goodwill established by the Franchisee's use of the Marks shall be the exclusive property of the Company.
  • 8.2 Use. The Franchisee shall use the Marks only as authorized, directed or approved by the Company. The Franchisee shall not use the Marks as part of any corporate or trade name, or with any prefix, suffix, or other modifying words, terms, designs, or symbols, or in

any modified form, nor may the Franchisee use the Marks in connection with the sale of any unauthorized product or service or in any other manner not expressly authorized by the Company. The Franchisee shall not use the Marks as part of any domain name, homepage, electronic address, user name, user profile or otherwise in connection with a website (unless approved by the Company), including, without limitation, in connection with any social networking site which references or identifies the Franchisee's Business, Business Location or Franchisee as a part of the System. The Franchisee shall give such notice of trademark and service mark registration as the Company specifies and to obtain such fictitious or assumed name registrations as may be required under applicable law. The non-exclusive personal right of the Franchisee to use the Marks in connection with the Franchisee's Business and its right to use the Marks and the System apply only to the Business Location and only so long as the Franchisee shall fully perform and comply with all of the conditions, terms and covenants of this Agreement. If, in the judgment of the Company, the acts of the Franchisee infringe upon or demean the goodwill, standards of uniformity or quality, or business standing associated with the Marks and the System, then the Franchisee shall immediately, upon notice from the Company, modify its use of the Marks and the System in the manner prescribed by the Company. The Franchisee shall not, during or after the Term, do anything directly or indirectly which would infringe upon, harm, mislead or contest the rights of the Company in the Marks or the System.

Source: Item 23 — Receipts (FDD pages 88–335)

What This Means (2025 FDD)

According to the 2025 Byrider FDD, franchisees must maintain the absolute confidentiality of Byrider's Confidential Information during and after the term of the franchise agreement. This information, derived from disclosures by Byrider, is considered proprietary, confidential, unique, special, and a trade secret. Franchisees are prohibited from using this information in any other business or manner unless specifically authorized or approved in writing by Byrider. Upon termination of the franchise agreement, the franchisee must continue to maintain the confidentiality of all proprietary and Confidential Information furnished by Byrider. Franchisees must also return the Manual and other confidential materials including, without limitation, all the BYRIDER Computer Software. Franchisee shall retain all such information in trust for the sole use and benefit of the Company and/or its affiliates. Franchisee will take all steps necessary and all steps reasonably requested by the Company, to insure that all such Confidential Information is kept secret and confidential for the sole use and benefit of the Company and its affiliates. In so doing, Franchisee shall require and represents that each of its employees, agents and representatives complies

Byrider franchisees can only share Confidential Information with employees and agents who need it to operate the business, including accountants, bankers, and potential investors, all of whom must sign a confidentiality agreement. Franchisees may also disclose Confidential Information to a governmental authority if legally compelled, provided they promptly notify Byrider in writing, allowing Byrider to seek a protective order or waive compliance.

To safeguard Byrider's proprietary information, the FDD states that Byrider is entitled to immediate equitable remedies, including restraining orders and injunctive relief, in the event of a breach. Money damages alone are considered an insufficient remedy for breaches of confidentiality. Furthermore, all employees and agents of the franchisee with access to confidential information must execute confidential information covenants in a form acceptable to Byrider.

Franchisees must also implement administrative, physical, and technical safeguards to protect Personal Information, complying with applicable laws and industry best practices. Franchisees are responsible for ensuring these safeguards meet all legal requirements, even if Byrider provides assistance or guidance. In the event of a security breach involving Personal Information, the franchisee must immediately notify Byrider and follow their instructions regarding curative actions and public statements. The franchisee must comply with Byrider's privacy policy and any requests to return or delete Personal Information as required by data sharing and privacy laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.