Who owns the confidential information related to Care Plus Medical Ucc?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
- 12.4 Name. If Franchisee is an entity, it shall not use the word[s] "Care Plus Medical" or any confusingly similar words in its legal name.
ARTICLE 13. COVENANTS
13.1 Confidential Information. With respect to all Confidential Information, Franchisee shall (a) adhere to all procedures prescribed by Care Plus Medical UCC for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business; (c) not use any such information in any other business or in any manner not specifically authorized in writing by Care Plus Medical UCC, (d) exercise the highest degree of diligence and effort to maintain the confidentiality of all such information during and after the term of this Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or use of Confidential Information. Franchisee acknowledges that all Confidential Information is owned by Care Plus Medical UCC (except for Confidential
Information which Care Plus Medical UCC licenses from another person or entity). This Section will survive the termination or expiration of this Agreement indefinitely.
13.2 Covenants Not to Compete.
- (a) Restriction In Term. During the term of this Agreement, neither Franchisee, any Owner, nor any spouse of an Owner (the "Restricted Parties") shall directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor.
- (b) Restriction Post Term. For two years after this Agreement expires or is terminated for any reason (or, if applicable, for two years after a Transfer), no Restricted Party shall directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor within five miles of Franchisee's Territory or the territory of any other Care Plus Medical business operating on the date of termination or transfer, as applicable.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, Care Plus Medical Ucc owns all confidential information, except for information that Care Plus Medical Ucc licenses from another entity. This includes customer data and other non-public data generated by the business.
For a prospective franchisee, this means that all sensitive information related to the Care Plus Medical Ucc business model, operational procedures, and customer data is the property of the franchisor. The franchisee is obligated to protect this information and can only use it as authorized by Care Plus Medical Ucc. This obligation extends even after the franchise agreement terminates or expires.
Care Plus Medical Ucc also automatically owns all ideas, plans, improvements, concepts, methods, and techniques related to the business conceived or developed by the franchisee, its employees, agents, or contractors. Care Plus Medical Ucc has the right to use and incorporate any innovations into the system without compensating the franchisee. The franchisee must also disclose these innovations to Care Plus Medical Ucc and execute any documents to confirm Care Plus Medical Ucc's ownership of these innovations.
This is a fairly standard clause in franchise agreements, as the franchisor needs to protect its intellectual property and maintain uniformity across the franchise system. However, it is important for a prospective franchisee to understand the full scope of what is considered confidential information and how they are restricted in its use, both during and after the franchise term.