What obligations of the parties survive the termination of the Christian Brothers Automotive agreement regarding Confidential Information?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Even if all rights to use Confidential Information pursuant to this Agreement end, all other obligations of the parties with respect to Confidential Information shall survive for so long as such information constitutes Confidential Information.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, even if all rights to use Confidential Information end, the obligations of both parties regarding that Confidential Information will continue as long as the information remains confidential. This means that even after the franchise agreement terminates, the franchisee must continue to protect and not misuse any confidential information they obtained during the franchise term.
Specifically, the franchisee must stop using the confidential information and return or destroy all documents containing it at Christian Brothers Automotive's request. This obligation extends beyond the termination of the agreement, ensuring that Christian Brothers Automotive's proprietary information remains protected.
This clause is designed to protect Christian Brothers Automotive's business methods, trade secrets, and other sensitive information, which are crucial to maintaining its competitive advantage. For a franchisee, this means understanding that the duty of confidentiality doesn't end when the franchise agreement does; it's a perpetual obligation as long as the information remains confidential.