If individual features are in the public domain, does that automatically exempt a City Wide franchisee's combination of features from confidentiality obligations?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
In this Section, Confidential Information will not be considered to fall within the exceptions above merely because such information is embraced by or is part of more general information in the public domain or in Franchisee's possession. In addition, any combination of features will not be deemed to be within the foregoing exceptions merely because individual features are in the public domain and are in Franchisee's possession, but only if the combination itself, its principal of operation, knowledge or ability are in the public domain or in Franchisee's possession.
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, the confidentiality obligations of a franchisee are not automatically waived simply because individual features of the City Wide system are in the public domain. The FDD specifies that while individual features may be publicly available, the specific combination of these features within the City Wide system is still considered confidential.
This means that even if a franchisee could independently find information about various aspects of the City Wide business model, the franchisee is still obligated to maintain the confidentiality of the specific way City Wide combines and utilizes these features. The exception to this rule is if the combination itself, its principal of operation, knowledge, or ability are already in the public domain or in the franchisee's possession.
For a prospective City Wide franchisee, this highlights the importance of understanding the scope of confidential information they are bound to protect. It's not enough to argue that individual elements are well-known; the franchisee must be prepared to demonstrate that the entire combination and its operational principles are also publicly known to avoid confidentiality obligations. This clause protects City Wide's unique system and methods, ensuring franchisees cannot freely replicate or share the system's specific configuration, even if its components are generally known.