What is the deadline for a City Wide franchisee to notify City Wide of an exception to confidentiality after disclosure of confidential information?

According to City Wide's 2025 Franchise Disclosure Document, a franchisee has 30 days to notify City Wide of any exceptions to confidentiality after City Wide discloses confidential information. This notification period applies to three specific exceptions: (i) if the information was already known by the franchisee prior to City Wide's disclosure, provided the franchisee identifies it as such; (ii) if the information was disclosed to the franchisee by a third party not under a duty of confidentiality and in rightful possession of the information; or (iii) if the information is generally known in the pertinent trade, which the franchisee must prove is well-known and generally used within the industry.

This 30-day notification requirement is crucial for a City Wide franchisee because it sets a strict deadline for claiming any of the listed exceptions to the confidentiality obligations. Failing to notify City Wide within this timeframe means the franchisee loses the ability to argue that the information falls under one of these exceptions, potentially leading to legal issues if the franchisee later uses or discloses the information.

It is important to note that the exceptions apply only if the franchisee notifies City Wide within the specified 30-day period. The FDD also clarifies that information is not considered within these exceptions merely because it is part of more general information in the public domain or in the franchisee's possession. Similarly, a combination of features is not excepted just because individual features are public or possessed by the franchisee; the combination itself must be publicly known or possessed by the franchisee. This underscores the importance of understanding and adhering to the notification requirement to protect the franchisee's rights and avoid potential breaches of the franchise agreement.