What is the scope of the confidential information that a Card My Yard franchisee must protect after termination?
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. You and your Owners further acknowledge that such specialized training and Confidential Information provide a competitive advantage, and that gaining access to them is a primary reason for entering into this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees must maintain the confidentiality of proprietary information, including trade secrets owned by Card My Yard and its affiliates, both during and after the franchise agreement term. Franchisees agree not to use this confidential information in any other business or capacity and must prevent unauthorized use or disclosure, even after the agreement ends. These confidentiality obligations are perpetually binding on the franchisee and their owners, ensuring long-term protection of Card My Yard's sensitive business information.
Upon termination or expiration of the Franchise Agreement, all rights granted to the franchisee terminate, and they must immediately cease operating the Card My Yard business and cannot represent themselves as a current or former franchisee. The franchisee must also stop using the Marks and any Confidential Information associated with the System. This includes discontinuing the use of all signs, advertising materials, displays, stationery, forms, and any other items displaying the Marks.
Furthermore, the franchisee is required to take necessary actions to cancel any assumed name, fictitious name, or equivalent registration containing the "Card My Yard" mark or any other Mark, providing satisfactory evidence of compliance within five days after termination or expiration. This ensures that the franchisee fully disassociates from the Card My Yard brand and system, protecting the integrity and reputation of the franchise. These post-termination obligations are designed to prevent any misuse of Card My Yard's confidential information and brand identity after the franchise relationship ends.