Is a City Publications franchisee allowed to use Confidential Information in any other business or capacity?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall disclose Confidential Information to Franchisee in the training program, the Manual and in guidance furnished to Franchisee during the term of this Agreement. Franchisee shall not acquire any interest in the Confidential Information, other than the right to utilize it in performing certain duties during the term of this Agreement, and Franchisee acknowledges that the use or duplication of the Confidential Information in any other business venture would constitute an unfair method of competition. Franchisee acknowledges and agrees that the Confidential Information is proprietary, includes Franchisor's trade secrets, and is disclosed to Franchisee solely on the condition that Franchisee (and its shareholders, officers, partners, members or managers, if Franchisee is a corporation, partnership, limited liability company or other business entity) does hereby agree that it: (a) shall not use the Confidential Information in any other business or capacity; (b) shall maintain the absolute confidentiality of the Confidential Information during and after the term of this Agreement; (c) shall not make unauthorized copies of any portion of the Confidential Information disclosed in written or other tangible form; and (d) shall adopt and implement all reasonable procedures prescribed from time to time by Franchisor to prevent unauthorized use or disclosure of the Confidential Information. Franchisee agrees to enforce the preceding provisions of this Section as to its employees, agents and representatives and shall be liable to Franchisor for any unauthorized disclosure or use of Confidential Information by any of them.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, franchisees are explicitly prohibited from using confidential information in any business or capacity other than operating their City Publications franchise. The FDD defines "Confidential Information" broadly, encompassing trade secrets, competitively sensitive data not publicly known, know-how related to operating a City Publications business, methods, techniques, formats, specifications, procedures, systems, policies, standards, business operating systems, record keeping, reporting methods, accounting systems, sales and marketing methods, training techniques, specifications, processes, procedures for card pack design, production, and distribution, business form specifications, the manual, ideas, research and development, lists of franchisees, advertisers, and suppliers, mailing data, mailing lists, market and territory analyses, population demographic studies, suggested pricing and cost information, and software developed by City Publications.
The franchise agreement states that franchisees only have the right to use confidential information to perform their duties as a franchisee during the term of the agreement. The agreement explicitly acknowledges that using or duplicating confidential information in any other business venture would be an unfair method of competition.
City Publications requires franchisees to maintain absolute confidentiality during and after the franchise term. Franchisees must also avoid making unauthorized copies of confidential information and implement procedures to prevent unauthorized use or disclosure. Franchisees are responsible for ensuring their employees, agents, and representatives also adhere to these confidentiality provisions, and the franchisee is liable for any unauthorized disclosures or use of confidential information by them. This is a standard practice in franchising to protect the franchisor's proprietary information and maintain a competitive advantage.