Under what condition is the Signer allowed to disclose Cinch I.T. Trade Secrets?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
Franchisee may disclose to Signer some or all of Franchisor's Trade Secrets relating to CINCH I.T.
SYSTEM.
Signer shall receive Franchisor's Trade Secrets in confidence, maintain them in confidence, and shall use them only in connection with the development and/or maintenance by Franchisee of the Franchised Business using CINCH I.T.
SYSTEM for so long as Franchisee is licensed by Franchisor to use CINCH I.T.
SYSTEM.
Signer shall not at any time make copies of any documents or compilations containing some or all of Franchisor's Trade Secrets without the express written permission of Franchisor.
Signer shall not disclose or permit the disclosure of Franchisor's Trade Secrets to anyone.
That all information and materials, including without limitation, specifications, techniques and compilations of data which Franchisor shall designate as confidential shall be deemed Franchisor's Trade Secrets for the purposes of this Agreement.
Signer shall not, directly or indirectly, do any act or omit to do any act, which would or would likely to be injurious or prejudicial to the goodwill associated with CINCH I.T.
SYSTEM.
Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the Signer lives, in order to protect the goodwill and unique qualities of CINCH I.T.
SYSTEM and the confidentiality and value of Franchisor's Trade Secrets, and in consideration for the disclosure to Signer of Franchisor's Trade Secrets, Signer further undertakes and covenants that, during the time Franchisee is a franchisee of Franchisor and for the two (2) years following the termination or expiration of Franchisee's Franchise Agreement, Signer will not:
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, a Signer (typically an employee or contractor) is generally prohibited from disclosing Cinch I.T.'s trade secrets to anyone. However, the franchisee may disclose Cinch I.T.'s trade secrets to the Signer under specific conditions.
The franchisee can disclose trade secrets to the Signer if the secrets relate to the Cinch I.T. system and are necessary for the Signer to develop or maintain the franchised business. The Signer must also receive the trade secrets in confidence and maintain that confidentiality. The Signer can only use the trade secrets in connection with the franchisee's business operations as long as the franchisee is licensed to use the Cinch I.T. system.
It is important to note that the Signer cannot make copies of documents containing Cinch I.T.'s trade secrets without the franchisor's express written permission. These restrictions are in place to protect the goodwill and unique qualities of the Cinch I.T. system, as well as the confidentiality and value of the franchisor's trade secrets. These obligations extend not only during the term of the franchise agreement but also for two years following its termination or expiration.