What is considered 'Confidential Information' for a Desi District franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Group shall have the exclusive right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
- 12.4 Name. If Franchisee is an entity, it shall not use the words "Desi District" or any confusingly similar words in its legal name.
ARTICLE 13. COVENANTS
13.1 Confidential Information. With respect to all Confidential Information, Franchisee shall (a) adhere to all procedures prescribed by Desi District Franchise Group 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 Desi District Franchise Group, (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 Desi District Franchise Group (except for Confidential Information which Desi District Franchise Group 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.
- (b) Restriction Post Term.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees must maintain the confidentiality of proprietary information both during and after the franchise agreement. Franchisees must adhere to all security procedures prescribed by Desi District for maintaining confidentiality. They can only disclose confidential information to employees to the extent necessary for business operations.
Franchisees are prohibited from using confidential information in any other business or manner not specifically authorized by Desi District in writing. They must exercise the highest degree of diligence to protect this information and promptly report any unauthorized disclosure or use. Additionally, franchisees cannot copy or reproduce any confidential information.
The Franchise Agreement states that all customer data generated or obtained by the Guarantor is Confidential Information belonging to Desi District Franchise Group. All Confidential Information is owned by Desi District Franchise Group (except for Confidential Information which Desi District Franchise Group licenses from another person or entity). These obligations regarding confidential information survive indefinitely even after the termination or expiration of the Franchise Agreement.