Does the Desi District Guaranty specify what constitutes 'Confidential Information'?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
pproved in writing by Desi District Franchise Group, (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 Desi District Franchise Group or its affiliates (except for Confidential Information which Desi District Franchise Group licenses from another person or entity). Guarantor acknowledges that all customer data generated or obtained by Guarantor is Confidential Information belonging to Desi District Franchise Group. 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.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Desi District Franchise Disclosure Document, the Guaranty specifies that all customer data generated or obtained by the Guarantor is considered Confidential Information belonging to Desi District Franchise Group. The Guarantor acknowledges that all Confidential Information is owned by Desi District Franchise Group or its affiliates, except for Confidential Information which Desi District Franchise Group licenses from another person or entity.
The Guaranty outlines specific obligations regarding Confidential Information. The Guarantor must adhere to all security procedures prescribed by Desi District for maintaining confidentiality, disclose such information to employees only to the extent necessary for business operations, and avoid using the information in any other business unless specifically authorized in writing by Desi District. The Guarantor is also expected to exercise the highest degree of diligence to maintain confidentiality both during and after the term of the Franchise Agreement.
Furthermore, the Guarantor is prohibited from copying or reproducing any Confidential Information and must promptly report any unauthorized disclosure or use of Confidential Information. These obligations regarding Confidential Information survive indefinitely even after the termination or expiration of the Franchise Agreement, highlighting the importance Desi District places on protecting this information.