What must a Cicis franchisee do with Confidential Information upon termination or expiration of the franchise agreement?

According to Cicis's 2025 Franchise Disclosure Document, upon the expiration or termination of the franchise agreement, the franchisee must immediately and permanently cease to use any Confidential Information in any manner. The franchisee is also required to return all Confidential Information to Cicis or destroy it at Cicis's direction. This obligation extends beyond the termination of the agreement, meaning the franchisee is perpetually bound to protect this information. Confidential Information includes growth and development plans, site selection criteria, training and operations materials, system standards, methods, specifications, market research, customer data, knowledge, experience, software, technology, customer lists, and operating results.

This requirement is standard in franchising to protect the franchisor's proprietary information and maintain the integrity of the brand. The definition of Confidential Information is broad, covering nearly every aspect of the Cicis business model. This means a former franchisee cannot use any knowledge gained from the franchise to start a competing business or assist another business in competition with Cicis.

The FDD also states that franchisees must ensure their owners, employees, and independent contractors are bound by the same confidentiality obligations. Prior to disclosing any Confidential Information to any person, the franchisee will obtain the execution by such person of covenants similar to those set forth in this Section 9.B, on Cicis's then-current form of agreement. These obligations survive the expiration, termination, or transfer of the franchise agreement. This ensures that all parties associated with the franchisee are aware of and compliant with the confidentiality requirements, further safeguarding Cicis's sensitive information.