Does the Deck Medic agreement require franchisees to acknowledge the potential harm of disclosing Know-How to immediate family members?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
her things and without limitation to the foregoing, Franchisee expressly agrees that any claim by Franchisee as to the alleged non-performance of Franchisor's obligations shall not permit and/or entitle Franchisee to withhold payments due Franchisor under this Agreement.
ARTICLE 6 RESTRICTIVE COVENANTS AND OBLIGATIONS
6.A. NECESSITY FOR RESTRICTIVE COVENANTS
Franchisee agrees that only through the course of entering into this Agreement is Franchisee being provided with access to the System, Franchisor's training, use of the Licensed Marks, and access to the Operations Manual and Confidential Information. Franchisee agrees that competition by Franchisee, Owners, Spouses and/or their immediate family members will jeopardize the System and cause irreparable harm to Franchisor and franchisees of Deck Medic Businesses. Accordingly, Franchisee and Franchisee's Owners and Spouses agree to comply with the restrictive covenants set forth in this Agreement, including this Article 6.
6.B. RESTRICTIVE COVENANTS: KNOW-HOW
Franchisee agrees that, at all times, both during the Term of this Agreement and, after its expiration or termination, Franchisee: (a) shall not use the Know-How in any business or capacity other than the operation of the Franchised Business pursuant to this Agreement and as instructed by Franchisor; (b) shall maintain the confidentiality of the Know-How at all times; (c) shall not make unauthorized copies of documents containing any Know-How; (d) shall take all reasonable steps that Franchisor requires from time to time to prevent unauthorized use or disclosure of the Know-How; and (e) shall stop using the Know-How immediately upon the expiration, termination or Transfer of this Agreement. Franchisee agrees that the foregoing covenants shall also apply to: (a) Franchisee's Owners and Spouses and, that Franchisee's
Owners and Spouses shall each execute and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1; and (b) Franchisee's directors, officers, employees and agents where disclosure of the Know-How was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality Agreement in the form attached as Exhibit 2.
6.C. RESTRICTIVE COVENANTS: CONFIDENTIAL INFORMATION
Franchisee agrees that, at all times, both during the Term of this Agreement and after its expiration or termination, Franchisee: (a) shall not use the Confidential Information in any business or capacity other than the Deck Medic Business operated by Franchisee; (b) shall maintain the confidentiality of the Confidential Information at all times; (c) shall not make unauthorized copies of documents containing any Confidential Information;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, franchisees acknowledge that providing access to the System, training, Licensed Marks, Operations Manual, and Confidential Information is exclusive to those who enter the Franchise Agreement. Franchisees recognize that competition from themselves, their owners, spouses, and immediate family members could harm the Deck Medic System and its franchisees. Consequently, franchisees, their owners, and spouses must adhere to the restrictive covenants outlined in the agreement.
The agreement specifies that franchisees must maintain the confidentiality of the Know-How, avoid unauthorized copies of related documents, and take necessary steps to prevent unauthorized use or disclosure. These obligations extend to the franchisee's owners and spouses, who must also sign a Franchise Owner and Spouse Agreement and Guaranty. Similarly, directors, officers, employees, and agents who require access to Know-How must sign a Confidentiality Agreement.
Furthermore, the FDD defines "Immediate Family" as the spouse and any member of the household, including children. This definition clarifies the scope of individuals who could potentially pose a risk to the Deck Medic System if they gain access to confidential information. Franchisees are responsible for ensuring that these individuals do not jeopardize the System through unauthorized competition or disclosure of Know-How.