Does the Cinch I.T. Employee Confidentiality Agreement require the employee to maintain Confidential Information in confidence?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
(i) Employee shall receive Franchisor's Confidential Information or Materials in confidence, maintain them in confidence, and use them only in the course of Employee's employment by Employer.
(ii) Employee will not, during the term of this Agreement or thereafter, directly or indirectly disclose to any other person or entity, or use for Employee's own account, or for other than Employer's business, any Confidential Information or Materials without first obtaining the written consent of Franchisor.
Employee shall at all times keep confidential all Confidential Information or Materials of Employer and Franchisor.
(iii) Employee will retain no copies of, and shall promptly deliver to Employer, upon the termination of Employee's services or at any other time Employer may request any and all documentary and other materials (including software) and all copies thereof in whatever form, including electronic versions thereof, made, compiled or otherwise obtained by or delivered or disclosed to Employee concerning any Confidential Information or Materials of Employer or Franchisor.
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Employee shall not at any time make copies of any documents or compilations containing some or all of Franchisor's Confidential Information or Materials without the express written permission of Employer.
Employee shall not disclose or permit the disclosure of Franchisor's Confidential Information or Materials except to other employees of Employer and only to the limited extent necessary to train or assist other employees of Employer who have also signed Confidentiality Agreements or Non-Disclosure, Non-Solicitation and Non-Competition Agreements.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, the Employee Confidentiality Agreement mandates that employees maintain the franchisor's confidential information in confidence. Specifically, employees must receive the confidential information or materials in confidence and use them only during their employment with the franchisee.
This agreement also stipulates that employees cannot disclose confidential information to any other person or entity or use it for their own account or for purposes outside the franchisee's business without the franchisor's prior written consent. Employees are required to keep all confidential information of both the employer (franchisee) and the franchisor confidential at all times.
Upon termination of employment or at the employer's request, employees must return all materials, including software and electronic versions, containing confidential information. The agreement also states that employees cannot make copies of documents containing the franchisor's confidential information without express written permission from the employer. This confidentiality extends to training or assisting other employees who have also signed similar confidentiality or non-disclosure agreements.
Cinch I.T. emphasizes the importance of protecting its trade secrets and confidential information, ensuring that franchisees take reasonable steps to maintain confidentiality. The agreement can be enforced by either the employer (franchisee) or the franchisor, and breaches can result in legal remedies, including injunctions and specific performance, to protect the franchisor's interests.