Can I use Desi District's copyrighted materials outside of the term of the franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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, franchisees are prohibited from using confidential information in any manner not specifically authorized in writing by Desi District, both during and after the term of the franchise agreement. This includes copyrighted materials, as they fall under the umbrella of confidential information. Franchisees must also adhere to Desi District's procedures for maintaining confidentiality and are required to exercise the highest degree of diligence to protect this information.
This restriction extends indefinitely beyond the termination or expiration of the franchise agreement. Franchisees cannot copy or reproduce any confidential information and must promptly report any unauthorized disclosure or use of such information. This obligation survives the termination of the agreement, meaning that even after a franchisee leaves the Desi District system, they are still legally bound to protect the brand's confidential information.
The FDD specifies that all confidential information is owned by Desi District, reinforcing the franchisor's control over its proprietary assets. This is a standard practice in franchising, as it protects the brand's competitive advantage and ensures consistency across all franchise locations. Prospective franchisees should carefully consider these restrictions and ensure they understand the scope of confidential information and their obligations to protect it, even after they are no longer part of the Desi District system.