What rights do Card My Yard franchisees have regarding the use of confidential information?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
, procedures and rules prescribed from time to time, shall constitute provisions of this Agreement as if they were set forth herein.
- B. Nondisclosure of Confidential Information. We will disclose to you those parts of our Confidential Information we deem necessary or advisable from time to time for the establishment and operation of the Card My Yard business. You agree that you and your Owners will not acquire any interest in the Confidential Information, other than the right to use the Confidential Information disclosed to you in operating the Card My Yard business during the term of this Agreement, and thatthe use or duplication of any Confidential Information in any other business would constitute an unfair method of competition. 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.
- C. Noncompetition Covenants.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees have specific rights and obligations regarding the use of confidential information. Card My Yard will disclose confidential information that it deems necessary for the establishment and operation of the Card My Yard business. Franchisees are granted the right to use this confidential information solely for operating their Card My Yard business during the term of the Franchise Agreement.
However, franchisees do not acquire any ownership interest in the confidential information itself. They cannot use or duplicate it for any other business, as this would be considered unfair competition. Franchisees are permitted to disclose confidential information only to their owners and employees, and only to the extent reasonably necessary for operating the Card My Yard business under the agreement.
Moreover, franchisees must ensure that their owners and employees maintain the confidentiality of the information. Upon request or termination, all materials containing confidential information must be surrendered to Card My Yard. These confidentiality obligations survive the termination or transfer of the Franchise Agreement, binding the franchisee and their owners perpetually. Franchisees must also implement reasonable procedures to prevent unauthorized use or disclosure of confidential information, including restrictions on disclosure to Card My Yard business personnel and others.