What precautions must a Chem Dry franchisee take regarding the Customer List?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE agrees that the list of FRANCHISEE's current customers, former customers and those who have inquired about the services provided by the BUSINESS (the "Customer List") shall be included in the Confidential Information, shall be the property of CDI and shall constitute a trade secret of CDI.
FRANCHISEE agrees that it does not own the Customer List and that it will not disclose the Customer List, or any portion thereof, to any person or entity other than CDI or its designee, either during the term of this Agreement or thereafter.
FRANCHISEE agrees to only use the Customer List in the operation of the BUSINESS and in accordance with this Agreement.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, franchisees must treat the customer list as confidential information and adhere to specific guidelines regarding its use and protection. Chem Dry includes the franchisee's current, former, and prospective customer lists as part of its confidential information and considers it a trade secret of CDI. Franchisees acknowledge that Chem Dry owns the customer list and agree not to disclose it to any third party during or after the agreement term, except to Chem Dry or its designee.
Chem Dry franchisees are permitted to use the customer list solely for operating their Chem Dry business in accordance with the franchise agreement. Franchisees cannot sell, rent, lease, or otherwise use the customer lists or contracts for any purpose other than operating the Chem Dry business.
Upon termination or expiration of the franchise agreement, franchisees must provide Chem Dry with access to the customer list, including customer names, addresses, phone numbers, email addresses, and last service dates. This ensures that Chem Dry retains control over customer relationships and data, which are considered integral to the Chem Dry business model. These restrictions are in place to protect Chem Dry's confidential information and maintain the integrity of the franchise system.