What rights does a Card My Yard franchisee have regarding the use of Confidential Information?

According to Card My Yard's 2025 Franchise Disclosure Document, franchisees have specific, limited rights regarding the use of confidential information. Card My Yard will disclose confidential information deemed necessary for the establishment and operation of the franchisee's Card My Yard business. The franchisee only has the right to use the confidential information disclosed to them for operating their Card My Yard business during the term of the Franchise Agreement.

The agreement explicitly states that franchisees do not acquire any ownership or interest in the confidential information itself, beyond the right to use it for their franchised business. Using or duplicating any confidential information in any other business is considered an unfair method of competition. Franchisees are also obligated to disclose confidential information only to their owners and employees to the extent reasonably necessary for operating the Card My Yard business.

Franchisees must ensure their employees also agree to protect Card My Yard's confidential information. The franchisee must obtain a written agreement from their employees, restricting the use, access, and dissemination of confidential information, thereby protecting the Card My Yard system against unfair competition. This agreement ensures that employees acknowledge the value of the confidential information they receive.

These confidentiality obligations survive the termination or transfer of the Franchise Agreement, binding the franchisee and their owners perpetually. This means that even after the franchise relationship ends, the franchisee cannot use or disclose Card My Yard's confidential information. Failure to comply with these confidentiality obligations can lead to termination of the Franchise Agreement.