Under the Cinch I.T. Employee Confidentiality Agreement, what is the consequence of failing to deliver documentary materials related to Confidential Information upon request?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
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- (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.
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Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, if an employee fails to deliver documentary and other materials (including software) and all copies thereof in whatever form, including electronic versions, made, compiled, or otherwise obtained by or delivered or disclosed to the employee concerning any Confidential Information or Materials of Employer or Franchisor, the employer and/or franchisor would be irreparably injured and be without an adequate remedy at law.
In the event of such a breach, or threatened or attempted breach of any of the provisions thereof, Cinch I.T. and/or the franchisee shall be entitled to enforce the provisions of this Agreement against the employee, and may seek, in addition to any other remedies which are made available to it at law or in equity, a temporary and/or permanent injunction and a decree for the specific performance of the terms of this Agreement, without being required to furnish a bond or other security.
This means that Cinch I.T. can pursue legal action against the employee, including seeking an injunction to prevent further disclosure or use of the confidential information. This clause highlights the importance Cinch I.T. places on protecting its confidential information and trade secrets, and the serious consequences for employees who violate the confidentiality agreement. A prospective franchisee should understand that they are responsible for ensuring their employees comply with these confidentiality terms.