What is Creative World School's definition of 'Confidential Information'?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
IX. CONFIDENTIAL INFORMATION.
9.01 Types of Confidential Information. We possess (and will continue to develop and acquire) certain confidential information (the "Confidential Information") relating to the development and operation of Schools, which includes (without limitation):
- (a) the System and the know-how related to its use;
- (b) plans, specifications, size and physical characteristics of Schools;
- (c) Construction Plans, approval criteria, site selection criteria, land use and zoning techniques and criteria;
- (d) methods in obtaining licensing and meeting regulatory requirements;
- (e) sources and design of Art, equipment, furniture, forms, materials and supplies;
- (f) marketing, advertising and promotional programs for Schools;
- (g) the selection, testing and training of managers and other management personnel for Schools;
- (h) any computer software we make available or recommend for Schools;
- (i) methods, techniques, formats, specifications, procedures, information and systems related to and knowledge of and experience in the development, operation and franchising of Schools;
- (j) knowledge of specifications for and suppliers of certain products, materials, supplies, furniture, furnishings and equipment; and
- (k) knowledge of operating results and financial performance of Schools other than those operated by you (or your affiliates).
9.02 Disclosure and Limitations on Use. We will disclose much of the Confidential Information to you and personnel of the School by furnishing the Manuals to you and by providing training, guidance and assistance to you. In addition, in the course of the operation of your School, you or your employees may develop ideas, new or improved Art, concepts, methods, techniques or improvements (collectively, "Improvements") relating to your School or other schools, which you agree to disclose to us. We will be deemed to own the Improvements and may use them and authorize you and others to use them in the operation of Schools. Improvements will then also constitute Confidential Information.
9.03 Confidentiality Obligations. You agree that your relationship with us does not vest in you any interest in the Confidential Information other than the right to use it in the development and operation of your School, and that the use or duplication of the Confidential Information in any other business would constitute an unfair method of competition. You acknowledge and agree that the Confidential Information is proprietary, includes trade secrets belonging to us and is disclosed to you or authorized for your use solely on the condition that you agree, and you therefore do agree, that you:
- (a) will not use the Confidential Information in any other business or capacity;
- (b) will maintain the absolute confidentiality of the Confidential Information during and after the Term;
- (c) will not make unauthorized copies of any portion of the Confidential Information disclosed via electronic medium, in written form or in other tangible form, including, for example, the Manuals; and
- (d) will adopt and implement all reasonable procedures we may prescribe from time to time to prevent unauthorized use or disclosure of the Confidential Information, including, restrictions on disclosure to your employees and the use of nondisclosure and noncompetition agreements we may prescribe for Managers or others who have access to the Confidential Information.
9.04 Exceptions to Confidentiality. The restrictions on your disclosure and use of the Confidential Information will not apply to the following:
- (a) disclosure or use of information, processes, or techniques which are generally known and used in the School business (as long as the availability is not because of a disclosure by you), provided that you have first given us written notice of your intended disclosure and/or use; and
- (b) disclosure of the Confidential Information in judicial or administrative proceedings when and only to the extent you are legally compelled to disclose it, provided that you have first given us the opportunity to obtain an appropriate protective order or other assurance satisfactory to us that the information required to be disclosed will be treated confidentially.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, Confidential Information encompasses a wide array of proprietary details related to the development and operation of its schools. This includes the System itself and the know-how associated with its use, the physical attributes of the schools like plans, specifications, and size, and construction-related information such as plans, approval criteria, site selection, and zoning techniques. Methods for obtaining licensing and meeting regulatory requirements also fall under this definition.
Furthermore, Creative World School's Confidential Information extends to the sources and designs of art, equipment, furniture, forms, materials, and supplies, as well as marketing, advertising, and promotional programs. It also covers the selection, testing, and training processes for managers and other personnel, any computer software made available or recommended, and the methods, techniques, formats, and systems related to the development, operation, and franchising of the schools. Knowledge of specifications for suppliers and operating results and financial performance of other Creative World School franchises (excluding the franchisee's own) are also included.
Creative World School will disclose much of this Confidential Information through manuals, training, and ongoing assistance. Any improvements or new ideas developed by the franchisee or their employees related to the schools must be disclosed to Creative World School and will be owned by them, subsequently becoming part of the Confidential Information. Franchisees are obligated to maintain the absolute confidentiality of this information during and after the term of the franchise agreement, and must not use it in any other business or capacity. They are also prohibited from making unauthorized copies and must implement procedures to prevent unauthorized use or disclosure by their employees, including using non-disclosure and non-competition agreements.
There are exceptions to these confidentiality obligations. Disclosure or use of information generally known and used in the school business is permitted, provided Creative World School receives prior written notice. Additionally, disclosure is allowed in judicial or administrative proceedings if legally compelled, but only after giving Creative World School the opportunity to obtain a protective order to ensure confidentiality. This comprehensive definition of Confidential Information underscores the importance Creative World School places on protecting its proprietary assets and maintaining a competitive advantage in the childcare and education sector.