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Does the Crawlspace Medic Franchise Agreement include a section on 'Non-Disclosure and Non-Competition Covenants'?

Crawlspace_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

[Item 22: CONTRACTS]

8 NON-DISCLOSURE AND NON-COMPETITION COVENANTS.

8.1 Confidential Information. Developer acknowledges and accepts that during the term of this Agreement, Developer will have access to Franchisor's trade secrets, including, but not limited to, methods, processes, customer lists, vendor partnerships and/or relationships, sales and technical information, financial information, costs, product prices and names, software tools and applications, website and/or email design, products, services, equipment, technologies and procedures relating to the operation of a Crawlspace Medic outlet; the Manual; methods of advertising and promotion; instructional materials; any other information which Franchisor may or may not specifically designate as "confidential" or "proprietary"; and the components of the System, whether or not such information is protected or protectable by patent, copyright, trade secret or other proprietary rights (collectively referred to herein as the "Confidential Information"). Developer shall not, during the term of this Agreement and thereafter,

communicate or divulge to, or use for the benefit of, any other person or entity, and, following the expiration or termination of this Agreement, shall not use for Developer's own benefit, any Confidential Information that may be communicated to Developer or of which Developer may be apprised in connection with the development of Crawlspace Medic outlets under the terms of this Agreement. Developer shall not at any time copy, duplicate, record or otherwise reproduce any Confidential Information, in whole or in part, or otherwise make the same available to any person, without Franchisor's prior written consent. The covenant in this Section 8.1 shall survive the expiration, termination or transfer of this Agreement or any interest herein and shall be perpetually binding upon Developer.

  • 8.3 Noncompetition Covenants.

Developer acknowledges that, pursuant to this Agreement, Developer will receive valuable training, trade secrets and Confidential Information of the System that are beyond the present knowledge, training and experience of Developer.

19. NON-DISCLOSURE AND NON-COMPETITION COVENANTS

19.1. Operations Manual.

  • 19.1.2.

Franchisee and any and all Principals shall at all times treat the Manual, written directives, and other materials and any other confidential communications or materials, and the information contained therein, as confidential and shall maintain such information as trade secret and confidential in accordance with this Article and this Agreement.

Franchisee and Franchisee's Principals, if any, shall not divulge and make such materials available to anyone other than those of Franchisee's employees who require the information contained therein to operate the Franchised Business.

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2024 FDD)

Yes, according to the 2024 Crawlspace Medic Franchise Disclosure Document, the agreement includes sections addressing non-disclosure and non-competition. Specifically, Section 8 and Section 19 of Item 22 within the Franchise Agreement outline these covenants.

Section 8.1 emphasizes the franchisee's acknowledgment of access to Crawlspace Medic's trade secrets and confidential information, including methods, processes, customer lists, vendor partnerships, sales and technical data, financial information, costs, product prices, software tools, website design, and the System's components. The franchisee is prohibited from divulging this information to others during and after the agreement, ensuring the protection of Crawlspace Medic's proprietary assets.

Section 8.3 further reinforces the non-competition aspect, stating that the franchisee will receive valuable training, trade secrets, and confidential information that goes beyond their existing knowledge. Section 19.1.2 requires franchisees and principals to treat the operations manual and other confidential communications as trade secrets, restricting access to only those employees who need the information to operate the franchised business. These covenants aim to protect Crawlspace Medic's competitive advantage and maintain operational standards within the franchise system.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.