Under what circumstances related to confidential information can the Byrider franchise agreement be terminated?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.16 Confidentiality. Except as required for Franchisee to conduct its regular daily business with the Company, Franchisee shall not at any time, either during or after termination of Franchisee's relationship with the Company, or in any way, disclose, disseminate, transfer and/or use, or permit anyone else to disclose, disseminate, transfer and/or use, any Confidential Information of the Company, and Franchisee shall retain all such information in trust for the sole use and benefit of the Company and/or its affiliates.
Franchisee acknowledges that the Confidential Information of the Company is valuable, special and unique to the Company's business and on which such business depends, and is proprietary to the Company and its affiliates, and that the Company has protected and wishes to continue to protect the Confidential Information by keeping it secret and confidential for the sole use and benefit of the Company and 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 with each and every provision of this
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the franchise agreement can be terminated if the franchisee violates confidentiality terms. Article XVII outlines the obligations upon termination or expiration of the agreement, stating that the franchisee must maintain the confidentiality of all proprietary and confidential information furnished by Byrider. This obligation extends beyond the termination of the agreement.
Article XX further emphasizes the franchisee's duty to protect Byrider's confidential information, prohibiting the disclosure, dissemination, transfer, or use of any confidential information, both during and after the franchise relationship. The franchisee must keep this information in trust for Byrider's benefit and take necessary steps to ensure its secrecy. This includes ensuring that all employees, agents, and representatives also comply with these confidentiality provisions.
Additionally, the franchisee acknowledges that Byrider's confidential information is valuable and proprietary, forming the foundation of Byrider's business. The franchisee's violation of non-compete covenants is presumed to involve the unlawful use of Byrider's confidential information, know-how, methods, and procedures. Byrider retains ownership of all materials related to confidential information, and the franchisee must promptly return these materials upon termination without retaining copies. These obligations survive the termination of the agreement, highlighting the critical importance Byrider places on protecting its proprietary information.