What must a City Wide franchisee establish to prove that information is generally known?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
However, your obligation to maintain proprietary information confidential should not include the following exceptions: (i) information as previously known by you before disclosure by CITY WIDE if you identify any information as previously known; (ii) information disclosed to you by a third party, unless the third party is under a duty not to disclose or use the information, or unless the third party is not in rightful possession of any information; or (iii) information generally known in the pertinent trade. Information shall be deemed generally known only if you can establish that the full particulars of the proprietary information in the combination disclosed to you are well known or generally used within the trade or industry.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 42–43)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee's obligation to maintain the confidentiality of information does not extend to information generally known in the pertinent trade. However, to demonstrate that information is generally known, the franchisee must establish that the full particulars of the proprietary information, in the combination disclosed to them, are well known or generally used within the trade or industry.
This means a City Wide franchisee cannot simply claim that individual aspects of the confidential information are known; they must prove that the specific combination of information that City Wide provides is already common knowledge or practice in the commercial cleaning industry. This is a high bar, as it requires demonstrating that the unique way City Wide combines its knowledge, methods, and processes is not exclusive to the franchise system.
This requirement protects City Wide's proprietary system while allowing franchisees to use information genuinely available to anyone in the industry. It also places the burden of proof on the franchisee to demonstrate that the information falls under this exception, meaning franchisees should be prepared to document and support any claims of general knowledge with credible evidence. Franchisees should also be aware that they must notify City Wide of this exception within 30 days of disclosure of the confidential information.