What is the specific section number related to confidentiality for Crown Gold Exchange franchisees?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
ARTICLE 13. COVENANTS
13.1 Confidential Information. With respect to all Confidential Information, Franchisee shall (a) adhere to all procedures prescribed by Crown Gold Franchising for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business; (c) not use any such information in any other business or in any manner not specifically authorized in writing by Crown Gold Franchising, (d) exercise the highest degree of diligence and effort to maintain the confidentiality of all such information during and after the term of this Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or use of Confidential Information. Franchisee acknowledges that all Confidential Information is owned by Crown Gold Franchising (except for Confidential Information which Crown Gold Franchising licenses from another person or entity). This Section will survive the termination or expiration of this Agreement indefinitely.
13.2 Covenants Not to Compete.
(a) Restriction – In Term. During the term of this Agreement, neither Franchisee, any Owner, nor any spouse of an Owner (the "Restricted Parties") shall directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor.
[Item 22: CONTRACTS]
- **2.
Confidential Information.** With respect to all Confidential Information Guarantor shall (a) adhere to all security procedures prescribed by Crown Gold Franchising for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business; (c) not use any such information in any other business or in any manner not specifically authorized or approved in writing by Crown Gold Franchising, (d) exercise the highest degree of diligence and make every effort to maintain the confidentiality of all such information during and after the term of the Franchise Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or
use of Confidential Information. Guarantor acknowledges that all Confidential Information is owned by Crown Gold Franchising or its affiliates (except for Confidential Information which Crown Gold Franchising licenses from another person or entity). Guarantor acknowledges that all customer data generated or obtained by Guarantor is Confidential Information belonging to Crown Gold Franchising. This Section will survive the termination or expiration of the Franchise Agreement indefinitely.
3. Covenants Not to Compete.
- (a) Restriction In Term.
During the term of the Franchise Agreement, Guarantor shall not directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor.
- (b) Restriction Post Term.
For two years after the Franchise Agreement expires or is terminated for any reason (or, if applicable, for two years after a Transfer by Guarantor), Guarantor shall not directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor located within five miles of Franchisee's Territory or the territory of any other Crown Gold Exchange business operating on the date of termination or transfer, as applicable.
If the Franchise Agreement is terminated before the Territory is determined, then the area of non-competition will the Development Area and the territory of any other Crown Gold Exchange business operating on the date of termination.
- (c) Interpretation.
[Item 22: CONTRACTS]
- 13.3 General Manager and Key Employees. If requested by Crown Gold Franchising, Franchisee will cause its general manager and other key employees to sign Crown Gold Franchising's then-current form of confidentiality and non-compete agreement (unless prohibited by applicable law).
[Item 22: CONTRACTS]
Franchisee shall protect the confidentiality and security of all software systems, and Franchisee shall abide by any System Standards related thereto.
Franchisee shall give Crown Gold Franchising unlimited access to Franchisee's point of sale system and other software systems used in the Business, by any means designated by Crown Gold Franchising.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the confidentiality obligations for franchisees are detailed in two sections. For the Guarantor, it is outlined in Section 2 of Item 22. For the Franchisee, these obligations are specified in Section 13.1, found within Article 13 of Item 22. Both sections emphasize the franchisee's duty to maintain the confidentiality of sensitive information, adhere to security procedures, and prevent unauthorized use or disclosure of confidential data. These obligations extend both during and after the term of the Franchise Agreement.
These confidentiality requirements are standard in franchising to protect the franchisor's proprietary information and trade secrets. Franchisees must understand that customer data and business innovations conceived during the franchise operation are owned by Crown Gold Exchange. The franchisee is granted a limited license to use customer data solely for the operation of the business during the agreement term.
Additionally, Crown Gold Exchange may require the franchisee's general manager and key employees to sign confidentiality and non-compete agreements. Franchisees must also protect the confidentiality and security of all software systems used in the business and provide Crown Gold Exchange with unlimited access to their point-of-sale and other software systems. These measures ensure that Crown Gold Exchange maintains control over its confidential information and system standards across all franchise locations.