To whom can a Card My Yard franchisee give confidential information?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to disclose the Confidential Information to your Owners and employees only to the extent reasonably necessary for the operation of the Card My Yard business pursuant to this Agreement.
Our Confidential Information is proprietary, includes trade secrets owned by us and our Affiliates, and is disclosed to you solely on the condition that you agree, and you do hereby agree, that you: (i) will not use the Confidential Information in any other business or capacity; (ii) will maintain the confidentiality of the Confidential Information during and after the term of this Agreement; (iii) will not make unauthorized copies of any portion of the Confidential Information; and (iv) will adopt and implement all reasonable procedures that we prescribe from time to time to prevent the unauthorized use or disclosure of the Confidential Information, including, without limitation, restrictions on disclosure of the Confidential Information to Card My Yard business personnel and others.
These covenants shall survive the expiration, termination or transfer of this Agreement or any interest herein and shall be perpetually binding upon you and each of the Owners.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 48–49)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees can disclose confidential information only to their owners and employees, but solely to the extent reasonably necessary for operating the Card My Yard business. This disclosure is conditional, requiring owners and employees to agree to specific terms. These terms include using the information only for the Card My Yard business, maintaining confidentiality during and after the franchise agreement, avoiding unauthorized copies, and adhering to procedures preventing unauthorized use or disclosure. These obligations survive any termination or transfer of the agreement.
Card My Yard emphasizes that franchisees and their personnel must not communicate or use confidential information for anyone else's benefit during or after the franchise term. Franchisees must also ensure their General Manager and other personnel with access to confidential information sign similar confidentiality agreements. This underscores the importance Card My Yard places on protecting its trade secrets, operational methods, and other proprietary information.
The Franchise Disclosure Document states that Card My Yard considers its confidential information to include trade secrets, information in the manuals, training techniques, financial details, customer and vendor information, marketing strategies, and any other knowledge related to the Card My Yard business. This broad definition means franchisees must exercise caution and diligence in managing and sharing this information.
These restrictions are typical in franchising, as franchisors need to protect their intellectual property and business methods. Prospective Card My Yard franchisees should carefully review Item 14 and Item 23 of the Franchise Disclosure Document to fully understand their obligations regarding confidential information and ensure they implement appropriate safeguards within their business.