Who has access to Devon Creek's trade secrets during the term of the Franchise Agreement?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, in connection with his or her duties, it will be necessary for Covenantor to have access to some or all of the confidential information, knowledge, know-how, techniques, contents of the Devon Creek Franchise Group operations manual and other materials used in or related to the System and/or concerning the methods of operation of the System (collectively referred to as "Confidential Information");
WHEREAS, the Confidential Information provides economic advantages to Franchisor and licensed users of the System, including Franchisee;
WHEREAS, Franchisee has acknowledged the importance of restricting the use, access and dissemination of the Confidential Information, and Franchisee therefore has agreed to obtain from Covenantor a written agreement protecting the Confidential Information and further protecting the System against unfair competition; and
WHEREAS, Covenantor acknowledges that receipt of and the right to use the Confidential Information constitutes independent valuable consideration for the representations, promises and covenants made by Covenantor herein.
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
1. Confidentiality Agreement.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, access to confidential information, including trade secrets, is granted to those who need it to fulfill their duties within the franchise system. Specifically, the FDD indicates that during the term of the Franchise Agreement, the franchisee and their principals are granted access to Devon Creek's trade secrets and confidential information. This access is provided in consideration for specialized training and the rights conferred by the franchise agreement.
However, this access comes with restrictions. Franchisees and their principals must agree to protect this information and not use it to compete unfairly with Devon Creek, other franchisees, or the franchisor. They are prohibited from divulging trade secrets or using them to harm the goodwill associated with the Devon Creek brand. This obligation extends beyond the simple need to know; it includes a legal responsibility to safeguard the information.
Furthermore, Devon Creek requires that franchisees obtain written agreements from anyone who has access to confidential information, protecting the information and the system from unfair competition. This suggests that employees or others working for the franchisee who require access to confidential information must also sign agreements to protect Devon Creek's interests. These measures ensure that the trade secrets and confidential information remain protected and are not misused, which is a common practice in franchising to maintain a competitive advantage and protect brand integrity.