Is customer data collected by a Devon Creek franchisee considered confidential information?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
ch physical copy and Franchisee shall pay Franchisor the then-current replacement fee.
- 19.2 Confidential Information. Franchisee along with its Principal(s) acknowledge and accept that during the term of this Agreement, Franchisee and any Principal will have access to Franchisor's trade secrets, including, but not limited to, methods, processes, customer lists, vendor partnerships and/or relationships, sales and technical information, costs, pricing, software tools and applications, website and/or email design, products, services, equipment, technologies and procedures relating to the operation of the Franchised Business; the Manual; methods of advertising and promotion; instructional materials; any other information which Franchisor may or may not specifically designate as "confidential" or "proprietary"; and the components of the System, whether or not such information is protected or protectable by patent, copyright, trade secret or other proprietary rights (collectively referred to herein as the "Confidential Information"). Neither Franchisee nor any Principal shall, during the term of this Agreement and thereafter, communicate or divulge to, or use for the benefit of, any other person or entity, and, following the expiration or termination of this Agreement, shall not use for their own benefit, any Confidential Information that may be communicated to Franchisee or any Principal or of which Franchisee or any Principal may be apprised in connection with the operation of the Franchised Business under the terms of this Agreement. Franchisee and any Principal shall not divulge and make any Confidential Information available to anyone other than those of Franchisee's employees who require the Confidential Information to operate the Franchised Business and who have themselves entered into confidentiality and non-compete agreements containing the same provisions as contained
in this Agreement, in accordance with Section 19.10 hereof. Franchisee and any Principal shall not at any time copy, duplicate, record or otherwise reproduce any Confidential Information, in whole or in part, or otherwise make the same available to any person other than those authorized above, without Franchisor's prior written consent. The covenant in this Section 19.2 shall survive the expiration, termination or transfer of this Agreement or any interest herein and shall be perpetually binding upon Franchisee and each Principal.
- 19.3 Protection of Information.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, customer lists are considered confidential information. Franchisees and their principals acknowledge that they will have access to Devon Creek's trade secrets, including customer lists, among other confidential data, during the term of the agreement. Franchisees are prohibited from divulging this information to anyone other than employees who need it to operate the franchised business and who have signed confidentiality and non-compete agreements.
This means that a Devon Creek franchisee must treat customer data as a closely guarded secret, protecting it from unauthorized access or disclosure. This obligation extends both during the term of the Franchise Agreement and even after its expiration or termination. The franchisee is responsible for ensuring that their employees also maintain this confidentiality through signed agreements.
This is a fairly standard practice in franchising, as franchisors want to protect their brand's competitive advantage and customer relationships. By designating customer lists as confidential information, Devon Creek aims to prevent franchisees or their employees from using this information to compete with the system, either during or after their involvement with the franchise. A prospective franchisee should understand the importance of maintaining this confidentiality and the potential legal ramifications of breaching this obligation.
Furthermore, the Devon Creek franchisee is solely responsible for maintaining the security and integrity of the computer and payment processing systems used in the Franchised Business and the customer and other data stored therein. The franchisee must implement all necessary computer hardware, software, and internet security procedures to protect this data from viruses, malware, privacy breaches, or other unauthorized access.