Who, besides employees, can a Christian Brothers Automotive franchisee divulge confidential information to?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor is willing to provide Franchisee with ongoing access to Franchisor's
Confidential Information only if Franchisor is assured by Franchisee that
Franchisee will not use such Confidential Information to compete with Franchisor,
nor disclose any such Confidential Information to any party without Franchisor's
prior written consent.
Franchisee may disclose Confidential Information that is required for the operation of the Franchised Business to its employees who must have access to it in order to perform their job duties for the operation of the Franchised Business. Franchisee shall take such precautions to ensure that its employees retain such information in confidence, including when Franchisor deems it appropriate, the execution by each such employee of a nondisclosure and noncompetition agreement provided by Franchisor (the "Nondisclosure Agreement"). If required by Franchisor, the Nondisclosure Agreement must (a) be executed at the earlier of the commencement of employment or the commencement of training of the respective employee, and (b) comply with the law of the state where the Franchised Business is located including without limitation all requirements pertaining to the validity and enforceability of the Nondisclosure Agreement. The Nondisclosure Agreement will be in a form prescribed by Franchisor and will include, without limitation, specific identification of Franchisor as a third-party beneficiary of the Nondisclosure Agreement with the
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 56–57)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from disclosing confidential information to any party without the franchisor's prior written consent. The franchisee can disclose confidential information that is required for the operation of the franchised business to its employees who must have access to it in order to perform their job duties.
Christian Brothers Automotive requires franchisees to take precautions to ensure their employees maintain confidentiality. This includes having employees execute a Nondisclosure Agreement, especially when deemed appropriate by Christian Brothers Automotive. This agreement identifies Christian Brothers Automotive as a third-party beneficiary with the independent right to enforce it. Franchisees must provide copies of these executed agreements to Christian Brothers Automotive within ten days of execution.
This policy ensures that Christian Brothers Automotive maintains control over its proprietary information and reduces the risk of it being used to compete against the franchise system. For a prospective franchisee, this means understanding the importance of confidentiality and implementing strict procedures to protect sensitive information. They must ensure that employees are properly trained and legally bound to maintain confidentiality.