Is a Chem Dry franchisee required to have employees sign a confidentiality agreement?

According to Chem Dry's 2024 Franchise Disclosure Document, franchisees are required to have each employee sign a confidentiality agreement at the time of employment. This agreement ensures employees maintain the confidentiality of Chem Dry's proprietary information. Chem Dry retains the right to regulate the form of these agreements.

This requirement is in place to protect Chem Dry's confidential information, which includes methods, techniques, formats, specifications, procedures, information, systems, sales and marketing techniques, and knowledge related to the Chem Dry business. The confidentiality extends both during and after the franchisee's agreement term. Franchisees must also prevent unauthorized copying of confidential information, whether it's in electronic or written form.

The customer list, including details like names, addresses, phone numbers, email addresses, and service dates, is also considered confidential information and a trade secret of Chem Dry. Franchisees do not own this list and cannot disclose it to third parties, using it only for the operation of their Chem Dry business as per the agreement. This measure prevents franchisees from using customer information for competitive purposes, especially after the franchise agreement ends.

All ideas, concepts, techniques, or materials related to the Chem Dry business, whether created by the franchisee or their employees, must be disclosed to Chem Dry and are deemed the company's property. This includes intellectual property, which is considered "works made-for-hire" for Chem Dry. Franchisees must assign ownership of such items to Chem Dry and take necessary actions to evidence Chem Dry's ownership or help them obtain intellectual property rights. This ensures that all innovations and improvements within the Chem Dry system benefit the franchisor and the entire franchise network.