Can a Devon Creek franchisee give Confidential Information to a third party?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, a franchisee's employee or associate (referred to as "Covenantor") is restricted from disclosing Confidential Information, except to a limited extent. The Covenantor can only disclose Confidential Information to those employees of the franchisee for training and assisting such employees in the operation of the franchised business.
This means that Devon Creek franchisees must ensure that their employees or anyone associated with their franchise operation sign a confidentiality agreement. This agreement ensures that Confidential Information is protected and only used for the operation of the franchised business. The agreement also restricts the Covenantor from making copies of documents containing Confidential Information without Devon Creek's express written permission.
This is a fairly standard practice in franchising, as franchisors need to protect their trade secrets and operational methods. Prospective Devon Creek franchisees should carefully review the confidentiality agreement and ensure they understand their obligations to protect the franchisor's Confidential Information. They should also implement procedures to train their employees on the proper handling and use of Confidential Information to avoid any potential breaches of the agreement.