What documents is a Devon Creek franchisee allowed to retain after termination?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
, 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, franchisees are generally required to surrender materials containing confidential information upon termination of their franchise agreement. Specifically, Covenantors, which includes franchisees and their employees, must surrender any material containing confidential information to Devon Creek or the franchisee upon request or termination of employment or association with the franchisee. This obligation ensures the protection of Devon Creek's proprietary information and trade secrets.
Upon termination, a Devon Creek franchisee must cease using all signs, billboards, advertising materials, displays, stationery, forms, and any other articles that display Devon Creek's marks. The franchisee must also take action to cancel any assumed name registrations that contain Devon Creek's trademarks and provide evidence of compliance to Devon Creek within ten days of termination or expiration of the agreement. This prevents any continued association with the Devon Creek brand after the franchise agreement ends.
While the FDD specifies what must be surrendered, it does not explicitly list documents that a franchisee is allowed to retain after termination. It is common practice in franchising that franchisees may retain personal financial records, legal documents related to their business entity, and copies of the franchise agreement itself. However, any documents containing trade secrets, operational manuals, customer lists, or other confidential information belonging to the franchisor must be returned. A prospective franchisee should seek clarification from Devon Creek regarding what specific documents they are permitted to keep after the termination of their franchise agreement.