factual

What is the definition of 'Confidential Information' in the context of Devon Creek's computer systems?

Devon_Creek Franchise · 2024 FDD

Answer 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. Covenants Not to Compete.

  • a. In order to protect the goodwill and unique qualities of the System, and in consideration for the disclosure to Covenantor of the Confidential Information, Covenantor further agrees and covenants that during Covenantor's employment or association with Franchisee, Covenantor shall not, for Covenantor or through, on behalf of or in conjunction with any person or entity:
    • (i) divert, or attempt to divert, any business, customer or referral source of the Franchised Business or of other Devon Creek franchisees in the System to any competitor, by direct or indirect inducement or otherwise,
    • (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any residential or commercial lawn care or servicing substantially similar to the System.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2024 FDD)

Based on the 2024 Devon Creek Franchise Disclosure Document, the term "Confidential Information" broadly encompasses the contents of the Devon Creek Franchise Group operations manual and other materials related to the System, including methods of operation. This information is considered vital for maintaining the economic advantages of the franchisor and its franchisees. Franchisees must acknowledge the importance of restricting access to and dissemination of this information, agreeing to protect it against unfair competition.

The confidentiality extends to various aspects of handling the information. Covenantors, who have access to confidential information, must maintain its secrecy and use it solely for operating the franchised business. They are prohibited from making unauthorized copies or disclosing the information to anyone except employees requiring it for training. Upon request or termination of employment, all materials containing confidential information must be surrendered.

Furthermore, franchisees are responsible for maintaining the security and integrity of their computer and payment processing systems, including customer data. They must implement necessary security procedures, such as updates and upgrades, to protect against viruses, malware, privacy breaches, and unauthorized access. Franchisees are also obligated to protect Confidential Information and must notify Devon Creek immediately if any Confidential Information is divulged in violation of the agreement.

In practical terms, a Devon Creek franchisee must ensure that all employees with access to the System's operational details understand their obligations to protect this information. This includes implementing robust cybersecurity measures and adhering to strict protocols for data handling and access. Failure to protect confidential information could lead to breaches of the franchise agreement and potential legal repercussions.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.