What happens to the non-disclosure covenants if a Card My Yard franchise agreement is terminated?
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 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the confidentiality agreement remains in effect even after the franchise agreement expires, terminates, or is transferred. Franchisees must maintain the confidentiality of Card My Yard's confidential information both during and after the agreement term. They are prohibited from using this information in any other business or capacity and must not make unauthorized copies.
Card My Yard requires franchisees to implement procedures to prevent unauthorized use or disclosure of confidential information, including restricting disclosure to personnel. These obligations are perpetually binding on the franchisee and their owners, ensuring long-term protection of Card My Yard's proprietary information.
This means that even after a franchisee leaves the Card My Yard system, they are legally obligated to protect the brand's confidential information. This includes trade secrets, operational methods, and marketing techniques. This is a standard practice in franchising to protect the brand's competitive advantage and proprietary knowledge.