factual

To whom can a Cinch I.T. franchisee disclose Confidential Information?

Cinch_I_T Franchise · 2024 FDD

Answer from 2024 FDD Document

velopment Schedule due to strike, riot, civil disorder, war, fire, natural catastrophe or other similar events beyond Your control, upon notice to Us, the Development Schedule and this Agreement shall be extended for a corresponding period, not to exceed ninety (90) days; provided, however, that this Section 9 shall not extend the time for payment of any monetary obligations owed to Us.

10. CONFIDENTIALITY

  • 10.1 Nothing contained in this Agreement shall be construed to require Us to divulge to You any trade secrets, techniques, methods or processes except the material contained in Our Operations Manuals and training materials, and then only pursuant to the terms, conditions and restrictions contained in the applicable Franchise Agreement. You acknowledge that Your knowledge of Our know-how, processes, techniques, information and other proprietary data is derived entirely from information disclosed to You by Us and that the information is proprietary, confidential and a trade secret ("Confidential Information") of Ours. You agree to adhere fully and strictly to the confidentiality of the information and to exercise the highest degree of diligence in safeguarding Our trade secrets during and after the term of this Agreement. You shall divulge the material only to Your employees and agents and only to the extent necessary to permit the efficient operation of the CINCH I.T. Franchised Businesses. It is expressly agreed that the ownership of all the Confidential Information and property is and shall remain vested solely in Us.
  • 10.2 You agree that all terms of this Agreement shall remain confidential and You shall not make any public announcement, issue any press release or publicity, make any confirmation of statements made by third (3rd) parties concerning the terms of this Agreement, or make any other disclosures other than the existence of this Agreement without Our prior written consent unless compelled by law or ordered to do so by a court of competent jurisdiction. It is agreed and understood that You may disclose the terms of this Agreement to Your professional advisors and lenders. We shall be free to make the disclosure of the terms of this Agreement as We determine, in Our sole discretion, to be in the best interest of Us or the System.

11. NON-COMPETITION AND NON-SOLICITATION

  • 11.1 You have heretofore specifically acknowledged that, pursuant to this Agreement, You will receive valuable specialized Confidential Information and information regarding the business of Franchisor, and the Franchisor's System. You covenant that during the term of this Agreement and subject to the post-term provisions contained herein, except as otherwise approved in writing by Us, You shall not, either directly or indirectly, for Yourself or through, on behalf of or in conjunction with any person, persons, partners, corporations or other recognized legal business entity:
    • (a) solicit, divert or attempt to solicit or divert any business or client of any of Your CINCH I.T. Franchised Businesses to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act deemed by Us to be injurious or prejudicial to the goodwill associated with the Licensed Rights or Our System; or
    • (b) own, manage, maintain, operate, engage in, advise, consult with, invest in, be employed by, make loans to, or perform services as a director, officer, manager, representative, agent, or otherwise, or have any direct or indirect interest in any business that (i) specializes, in whole or in part, in offering to the public substantially similar products and/or services to those products and/or services offered by a CINCH I.T. franchised business prior to the termination or expiration of this Agreement (a "Competitive Business") or (ii) grants franchises or licenses to others to operate a Competitive Business.
  • 11.2 You covenant that, except as otherwise approved in writing by Us, You shall not, for a continuous uninterrupted period commencing upon the expiration or termination of this Agreement, regardless of the cause for termination, and continuing for two (2) years thereafter, either directly or indirectly, for Yourself or through, on behalf of or in conjunction with any person, persons, partnership or corporation, own, maintain, engage in, be employed by, advise, assist, invest in, franchise, make loans to, or have any interest in any business which is the same as or substantially similar to a CINCH I.T. franchised business and which is located within a radius of twenty-five (25) miles of each Designated Territory described in the Development Area hereunder or within twenty-five (25) miles of the location of any Franchisor-owned, franchisee-owned or affiliate-owned CINCH I.T. Business under the System which is in existence on the date of expiration or termination of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 60–269)

What This Means (2024 FDD)

According to Cinch I.T.'s 2024 Franchise Disclosure Document, franchisees can disclose Confidential Information to their employees and agents, but only to the extent necessary for the efficient operation of the Cinch I.T. Franchised Businesses. Prior to disclosing any Confidential Information, the franchisee must require all such employees or contractors to sign Confidentiality Agreements in the form required by Cinch I.T., and must forward a copy of the agreement to them.

Furthermore, the Cinch I.T. franchisee must ensure that trainees, who receive the franchisor's trade secrets, maintain them in confidence and use them only in connection with the development and/or maintenance of the business using the Cinch I.T. system. Trainees can only disclose trade secrets to other employees of the franchisee who have also signed Non-Disclosure, Non-Solicitation and Non-Competition Agreements or Confidentiality Agreements, as deemed appropriate by the franchisor.

The FDD also states that franchisees may disclose Cinch I.T.'s trade secrets to a 'Signer,' who is bound by similar confidentiality obligations. The Signer must maintain the confidentiality of the trade secrets and use them only in connection with the development and/or maintenance of the franchised business. However, the Signer is explicitly prohibited from disclosing the franchisor's trade secrets to anyone else.

In addition to employees, agents, and trainees, Cinch I.T. franchisees may disclose the terms of the franchise agreement to their professional advisors and lenders. However, any other disclosures, such as public announcements or press releases, require the prior written consent of Cinch I.T., unless compelled by law or ordered by a court.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.