What is the Christian Brothers Automotive franchisee's obligation regarding the confidentiality of systems of operation?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchisee's employees are not employees of Franchisor or its affiliates.
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
7. CONFIDENTIAL INFORMATION.
7.01 Non-Use and Non-Disclosure of Confidential Information. Except as otherwise stated herein, Franchisee shall not, during the term of this Agreement or at any time thereafter, communicate, divulge or use for the benefit of any other person, persons, partnership, association, corporation or entity the Confidential Operations Manual, any information, knowledge or Know-How concerning the systems of operation, products, services, procedures, policies, standards, criteria or Customers, Customer Information, Data and/or any other information which Franchisor designates in other sections of this Agreement or elsewhere as confidential (collectively "Confidential Information"). 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.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, franchisees have specific obligations regarding confidential information. During the term of the Franchise Agreement and thereafter, franchisees must not communicate, divulge, or use the Confidential Operations Manual or any information, knowledge, or know-how concerning the systems of operation, products, services, procedures, policies, standards, criteria, customers, customer information, or data for the benefit of any other person or entity. Christian Brothers Automotive designates this information as confidential.
Franchisees may disclose confidential information to their employees who need access to it to perform their job duties for the operation of the franchised business. Franchisees must take precautions to ensure that their employees keep such information confidential. This includes, when deemed appropriate by Christian Brothers Automotive, requiring employees to sign a non-disclosure and non-competition agreement.
If required by Christian Brothers Automotive, the non-disclosure agreement must be executed at the earlier of the commencement of employment or the commencement of training of the respective employee. It must also comply with the law of the state where the franchised business is located, including all requirements pertaining to the validity and enforceability of the non-disclosure agreement. The non-disclosure agreement will be in a form prescribed by Christian Brothers Automotive and will include specific identification of Christian Brothers Automotive as a third-party beneficiary of the non-disclosure agreement with the independent right to enforce it. Franchisees must submit copies of all such executed non-disclosure agreements to Christian Brothers Automotive within ten days of their execution.