Does the Cinch I.T. Disclosure Document include a form of Non-Disclosure Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
f which you may be apprised by virtue of your operation under the terms of the Franchise Agreement or the Development Agreement.
General Managers and anyone required to attend training cannot have an interest in or business relationship with any business competitive with the CINCH I.T. concept. We require your managers to sign our then-current form of Non-Disclosure, Non-Solicitation and Non-Competition Agreement; our current form is attached as Exhibit F to this Disclosure Document, subject to applicable state law. We require your employees to sign our then-current form of Confidentiality Agreement; our current form is attached as Exhibit G to this Disclosure Document.
You may compile and maintain current, former and prospective client information, for your Franchised Business, however, all client lists are our proprietary information and may only be used for the normal conduct of the Franchised Business during the term of the Franchise Agreement. You must transfer them to us on the expiration, termination, repurchase or transfer of your Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 60)
What This Means (2024 FDD)
Yes, the 2024 Cinch I.T. Franchise Disclosure Document includes Non-Disclosure Agreements. Cinch I.T. requires that the franchisee's general managers sign a Non-Disclosure, Non-Solicitation, and Non-Competition Agreement, the current form of which is attached as Exhibit F to the Disclosure Document. Cinch I.T. also requires that the franchisee's employees sign a Confidentiality Agreement, the current form of which is attached as Exhibit G to the Disclosure Document. In addition, Exhibit H to the Disclosure Document is a Spousal Non-Disclosure and Non-Competition Agreement.
These agreements ensure that confidential information, trade secrets, and the Cinch I.T. system are protected. The franchisee also agrees to keep confidential the Operations Manual, materials designated for use with the Cinch I.T. system, and other information designated for confidential use, as well as all other trade secrets, knowledge, and business know-how concerning the establishment or operation of the franchised business.
The franchisee acknowledges that unauthorized use or disclosure of confidential information will cause incalculable and irreparable injury to Cinch I.T. All information, knowledge, and know-how not generally known in the Information Technology Support business about Cinch I.T.'s products, equipment, services, standards, specifications, systems, procedures, and techniques, and such other information or materials as Cinch I.T. may designate as confidential, shall be deemed confidential and proprietary.
The confidentiality provisions survive any termination or expiration of the Franchise Agreement. This means that even after the franchise relationship ends, the franchisee is still obligated to protect Cinch I.T.'s confidential information. Prospective franchisees should carefully review Exhibits F, G, and H, and understand the scope and limitations of these agreements, as they can significantly impact their ability to operate a similar business in the future.