What is a Creative World School franchisee's obligation regarding maintaining the Manuals as confidential?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
appearance to meet brand standards. You agree to follow the standards, specifications and operating procedures we establish periodically for the System that are described in the Manuals. You also must comply with all updates and amendments to the System as described in newsletters or notices we distribute, including via computer systems. We also reserve the right to make the Manuals accessible to you on-line via computer systems or by any other electronic format (like Internet, intranet, Websites, e-mail, CD-ROM, etc.). However, any form of the Manuals accessible to you on-line or by other electronic format is our proprietary information and will be deemed Confidential Information for purposes of this Agreement. You agree to maintain the Manuals as confidential and maintain the information in the Manuals as secret and confidential. The Manuals may be modified, updated and revised from time to time to reflect changes in System Standards. You agree to keep your printed copy of the Manuals (if any) current and in a secure location at the School. In the event of a dispute relating to the contents of any printed copy of the Manual, the master copy of the Manuals we maintain at our principal of
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, franchisees have strict obligations to maintain the confidentiality of the franchise's operational manuals. These manuals, whether in printed or electronic format, are considered proprietary information and are deemed Confidential Information under the Franchise Agreement. Franchisees must treat the information within the manuals as secret and confidential, agreeing not to disclose it to unauthorized parties. This obligation extends both during and after the term of the franchise agreement.
Creative World School franchisees are prohibited from copying, duplicating, recording, or reproducing any part of the manuals. They must keep any printed copies secure at the school and ensure they are up-to-date. If a printed copy is lost, destroyed, or significantly damaged, the franchisee is responsible for obtaining a replacement at the current charge of $1,000. In case of disputes, the master copy of the manuals maintained by Creative World School Franchising Company, Inc. will be controlling, or the most recent online version if electronic manuals are used.
Franchisees must also implement reasonable procedures to prevent unauthorized use or disclosure of confidential information, including restricting disclosure to employees and using non-disclosure and non-competition agreements for managers or others with access to the information. The franchisee acknowledges that the confidential information includes trade secrets belonging to Creative World School, and any unauthorized use or duplication would constitute unfair competition. These confidentiality obligations are standard practice in franchising to protect the brand's proprietary systems and methods.
There are limited exceptions to these confidentiality obligations. Disclosure or use of information generally known and used in the school business is permitted, provided the franchisee gives Creative World School prior written notice. Additionally, disclosure of confidential information may occur in judicial or administrative proceedings if legally compelled, but only after giving Creative World School the opportunity to obtain a protective order to ensure the information remains confidential.