Can a Card My Yard franchisee use the Confidential Information in any other business or capacity?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
isclose 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.
- C. Noncompetition Covenants. You and your Owners specifically acknowledge that, pursuant to this Agreement, you and they will receive access to valuable training and Confidential Information which are beyond your and their present skills and experience, including, without limitation, information regarding operational, sales, promotional and marketing methods and techniques of the System.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from using the Confidential Information provided to them in any business or capacity other than the operation of their Card My Yard franchise. The FDD emphasizes that this Confidential Information, which includes trade secrets, operational methods, marketing strategies, and customer data, is proprietary and disclosed solely for the purpose of running the Card My Yard business under the Franchise Agreement.
This restriction is reinforced by the agreement that franchisees must maintain the confidentiality of the information both during and after the term of the Franchise Agreement. They are also prohibited from making unauthorized copies and must implement procedures to prevent unauthorized use or disclosure, even among their own employees. This obligation extends to the franchisee's owners, ensuring a comprehensive safeguard of Card My Yard's proprietary assets.
The agreement also specifies that access to valuable training and Confidential Information is a primary reason for entering into the Franchise Agreement, providing a competitive advantage. Therefore, franchisees acknowledge that using this information outside of the Card My Yard business would constitute an unfair method of competition. These covenants regarding confidentiality and non-competition are designed to protect the goodwill and competitive edge of the Card My Yard system.