factual

What steps must a Byrider franchisee take to protect the company's 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.

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

What This Means (2025 FDD)

According to Byrider's 2025 Franchise Disclosure Document, franchisees must maintain the absolute confidentiality of Byrider's Confidential Information during and after the term of the franchise agreement. This includes not using any Confidential Information in any other business or manner unless specifically authorized or approved in writing by Byrider. Franchisees must only share Confidential Information with employees and agents who need access to it to operate the business, including accountants, bankers, and potential investors, all of whom must sign a confidentiality agreement. Franchisees must also ensure that all employees and agents with access to confidential information execute confidentiality covenants in a form acceptable to Byrider. Franchisees must retain all such information in trust for the sole use and benefit of Byrider and/or its affiliates.

If a franchisee is legally compelled to disclose Confidential Information to a governmental authority, they must promptly provide Byrider with written notice so that Byrider may seek a protective order or other remedy. Franchisees must also take all necessary steps, and any steps reasonably requested by Byrider, to ensure that all Confidential Information is kept secret and confidential for the sole use and benefit of Byrider and its affiliates. Franchisees must implement all administrative, physical, and technical safeguards necessary to protect any Personal Information in accordance with applicable law and industry best practices. Franchisees must also comply with Byrider's privacy policy, as it may be amended periodically, and with any requests to return or delete Personal Information.

Upon termination or expiration of the franchise agreement, franchisees must continue to maintain the confidentiality of all proprietary and Confidential Information furnished by Byrider. Due to the unique nature of Byrider's Confidential Information, the Marks, and the Manual, Byrider is entitled to immediate equitable remedies, including restraining orders and injunctive relief, to safeguard any proprietary, confidential, unique, and special information. Money damages alone would be an insufficient remedy for any breach of these confidentiality terms. Franchisees acknowledge that violating non-compete covenants would result in immediate and irreparable injury to Byrider, and it may be presumed that any violation of these covenants involves the unlawful use of Byrider's Confidential Information.

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.