What agreement must a Devon Creek franchisee ensure its employees make regarding the use of confidential information?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
tary products, services, promotions and methods (the "System") for the establishment and operation of an Devon | | Creek outlet (the "Franchised Business"); | | | | 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.
- a. Covenantor shall, at all times, maintain the confidentiality of the Confidential Information and shall use such Confidential Information only in the course of his or her employment by or association with Franchisee in connection with the operation of a Franchised Business under the Franchise Agreement.
- b. Covenantor shall not at any time make copies of any documents or compilations containing some or all of the Confidential Information without Franchisor's express written permission.
- c. Covenantor shall not at any time disclose or permit the disclosure of the Confidential Information except, and only then to the limited extent necessary, to those employees of Franchisee for training and assisting such employees in the operation of the Franchised Business.
- d. Covenantor shall surrender any material containing some or all of the Confidential Information to Franchisee or Franchisor, upon request, or upon termination of employment or association with Franchisee.
- e. Covenantor shall not at any time, directly or indirectly, do any act or omit to do any act that would or would likely be injurious or prejudicial to the goodwill associated with the System.
- f. Covenantor agrees that no Confidential Information may be reproduced, in whole or in part, without written consent.
**2.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, a franchisee must ensure their employees (referred to as 'Covenantor' in the agreement) sign a confidentiality agreement to protect the franchisor's confidential information. This agreement restricts the employee's use and disclosure of confidential information related to the Devon Creek system. The agreement acknowledges that access to confidential information provides economic advantages to Devon Creek and its franchisees.
The confidentiality agreement mandates that employees maintain the confidentiality of the information and use it only for operating the franchised business. Employees are prohibited from making copies of documents containing confidential information without express written permission from Devon Creek. Disclosure of confidential information is only permitted to the extent necessary for training other employees in the operation of the franchised business.
Upon request or termination of employment, employees must surrender any material containing confidential information to the franchisee or Devon Creek. Furthermore, employees are prohibited from taking any actions that could harm the goodwill associated with the Devon Creek system. The agreement explicitly states that no confidential information may be reproduced without written consent. This ensures that the franchisee takes responsibility for protecting Devon Creek's proprietary information through legally binding agreements with their staff.