For what purpose can a Desi District franchisee use the confidential information provided?
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.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 42–43)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, a franchisee can only disclose confidential information to its employees to the extent necessary for the business's operation. The franchisee cannot use the confidential information in any other business or manner unless specifically authorized in writing by Desi District.
Desi District franchisees must adhere to all procedures prescribed by Desi District for maintaining confidentiality. They are expected to exercise the highest degree of diligence and effort to maintain the confidentiality of all such information both during and after the term of the Franchise Agreement.
Furthermore, franchisees are prohibited from copying or reproducing any confidential information and must promptly report any unauthorized disclosure or use of confidential information. All customer data and other non-public data generated by the business is considered confidential information and is exclusively owned by Desi District, although it is licensed back to the franchisee for use in connection with the business during the term of the agreement.