factual

Under what conditions is the Trainee permitted to use Cinch I.T.'s Trade Secrets?

Cinch_I_T Franchise · 2024 FDD

Answer from 2024 FDD Document

NCH I.T. SYSTEM against unfair competition;

WHEREAS, Trainee wishes to remain, or wishes to become, an employee of Franchisee; and

WHEREAS, Trainee wishes and needs to receive and use Franchisor's Trade Secrets in the course of Trainee's employment in order to effectively perform Trainee's services for Franchisee.

NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:

    1. Franchisor and/or Franchisee shall disclose to Trainee some or all of Franchisor's Trade Secrets relating to CINCH I.T. SYSTEM.
    1. Trainee shall receive Franchisor's Trade Secrets in confidence, maintain them in confidence, and use them only in the course of Trainee's employment by Franchisee and then only in connection with the development and/or maintenance by Franchisee of Business using CINCH I.T. SYSTEM for so long as Franchisee is licensed by Franchisor to use CINCH I.T. SYSTEM.
    1. Trainee 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.
    1. Trainee shall not disclose or permit the disclosure of Franchisor's Trade Secrets except to other employees of Franchisee and only to the limited extent necessary to train or assist other employees of Franchisee who have also signed Non-Disclosure, Non-Solicitation and Non-Competition Agreements or Confidentiality Agreements where appropriate as determined by Franchisor in the development or maintenance of Business using CINCH I.T. SYSTEM.

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

What This Means (2024 FDD)

According to Cinch I.T.'s 2024 Franchise Disclosure Document, a trainee is permitted to use Cinch I.T.'s trade secrets under specific conditions related to their employment and the franchisee's licensing agreement. The trainee must receive the trade secrets in confidence and maintain that confidentiality. Their use of these secrets is strictly limited to the course of their employment by the franchisee.

Specifically, the trainee can only use the trade secrets in connection with the development and/or maintenance of the franchisee's business that utilizes the Cinch I.T. system. This permission is further contingent upon the franchisee being licensed by Cinch I.T. to use the Cinch I.T. system. The trainee's right to use these trade secrets extends only for as long as the franchisee maintains their license with Cinch I.T.

Furthermore, the trainee is prohibited from making copies of any documents containing Cinch I.T.'s trade secrets without express written permission from Cinch I.T. They are also restricted from disclosing these trade secrets, except to other employees of the franchisee who have signed similar non-disclosure and non-competition agreements, and even then, only to the extent necessary for training or assisting those employees in the development or maintenance of the business using the Cinch I.T. system. Upon termination of employment, the trainee must surrender all materials containing Cinch I.T.'s trade secrets to the franchisee or Cinch I.T.

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.