Who owns the Confidential Information related to a Clean Your Dirty Face franchise?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and Franchisee and would constitute a breach of Covenantor's obligations of confidentiality and an unfair method of competition with Franchisor and/or other CYDF Facial Bars owned by Franchisor or franchisees.
Covenantor acknowledges and agrees that the Confidential Information is confidential to and a valuable asset of Franchisor. The Confidential Information will be disclosed to Covenantor solely on the condition that Covenantor agrees to the terms and conditions of this Agreement. Covenantor therefore agrees that during the term of the Franchise Agreement and thereafter, he or
Mud Franchising, LLC
she: (a) will not use the Confidential Information in any other business or capacity; (b) will maintain the absolute confidentiality of the Confidential Information; (c) will not make unauthorized copies of any portion of the Confidential Information disclosed or in written form; and (d) will adopt and implement all reasonable procedures prescribed from time to time by Franchisor and Franchisee to prevent unauthorized use or disclosure of or access to the Confidential Information.
Notwithstanding anything to the contrary contained in this Agreement, the restrictions on Covenantor do not apply to (a) disclosure or use of information, methods, or techniques which are generally known and used in the industry (as long as the availability is not because of a disclosure by Covenantor or Covenantor's agents, and such disclosure or use is not otherwise prohibited by this Agreement), provided that Covenantor has first given Franchisor written notice of his or her intended disclosure and/or use;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, Mud Franchising, LLC owns the confidential information related to developing and operating CYDF Facial Bars. This information includes training and operations materials, system standards, methods, formats, specifications, sales and marketing techniques, market research, and strategic plans. It also encompasses knowledge of suppliers, operating assets, computer software, operating results, financial performance, and customer data.
Clean Your Dirty Face franchisees acknowledge they will not acquire any interest in the confidential information, other than the right to use it as specified by Clean Your Dirty Face during the term of the Franchise Agreement. Franchisees agree to maintain the absolute confidentiality of this information and to implement procedures to prevent unauthorized use or disclosure. This obligation extends to their family members, owners, officers, directors, agents, employees, representatives, spouses, affiliates, successors, and assigns.
The agreement specifies that franchisees cannot use the confidential information in any other business or capacity and must not make unauthorized copies. Franchisees are also required to follow Clean Your Dirty Face's prescribed procedures to protect the confidentiality of the information. This ensures that the proprietary knowledge and trade secrets of Clean Your Dirty Face remain protected, maintaining the integrity and competitive advantage of the franchise system.