What does Dq Treat consider 'Confidential Information' related to the franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
secret. Licensee will:
- (1) not use the Confidential Information in any other business or capacity;
- (2) maintain the absolute confidentiality of the Confidential Information during and after the term of this agreement;
- (3) not make unauthorized copies of any Confidential Information disclosed in written form nor input or use any Confidential Information in any open source artificial intelligence program;
- (4) adopt and implement all reasonable procedures Company directs to prevent unauthorized use or disclosure of the Confidential Information, including restrictions on disclosure to Restaurant employees;
- (5) not reverse engineer, decompile or disassemble any of Company's proprietary products, formulas, ingredients, or software; and
- (6) ensure that all Owners, the Designated Manager, the Assistant Managers and any other employees with access to Confidential Information abide by the confidentiality obligations in this agreement.
- (B) Compelled Disclosure. The restrictions on Licensee's disclosure and use of the Confidential Information will not apply to disclosure of Confidential Information in judicial or administrative proceedings to the extent Licensee is legally compelled to disclose this information, if Licensee uses its best efforts to maintain the confidential treatment of the Confidential Information, and provides Company the opportunity to obtain an appropriate protective order or other assurance satisfactory to Company of confidential treatment for the information required to be disclosed.
- 6.13 Improvements. If the Licensee, Owners or Licensee's employees or agents conceive or develop any ideas, concepts, products, recipes, process methods, techniques, improvements, or additions relating to the development or operation of a DQ® restaurant or the System, or any new trade names, service marks or other commercial symbols, or associated logos relating to the operation of the Restaurant, or any advertising or promotion ideas related to the Restaurant, then:
- (A) Licensee must fully and promptly disclose these to Company;
- (B) they are Company's property, and Licensee and Licensee's Owners, agents or employees must sign all documents necessary to evidence the assignment of these items to Company without compensation;
- (C) Company has the perpetual right to use and authorize others to use these items without any obligation to Licensee for royalties or other fees; and
- (D) Licensee must not introduce into the Restaurant any of these or any additions or modifications to the System without Company's prior written consent.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, Confidential Information excludes data generally known to the public, unless the franchisee or related parties disclose it, breaking confidentiality.
The Dq Treat franchisee must avoid unauthorized copying of written Confidential Information and is prohibited from inputting or using any Confidential Information in any open source artificial intelligence program. They must also implement procedures to prevent unauthorized use or disclosure, including employee restrictions, and must not reverse engineer Dq Treat's products, formulas, or software. All owners, managers, and employees with access to confidential information must adhere to these confidentiality obligations.
However, these restrictions do not apply if the franchisee is legally compelled to disclose Confidential Information in legal proceedings, provided they try to maintain its confidential treatment and give Dq Treat a chance to obtain a protective order.
Additionally, any ideas, concepts, products, recipes, processes, or improvements related to the Dq Treat restaurant or system developed by the franchisee or their employees become Dq Treat's property. The franchisee must disclose these to Dq Treat and sign documents to assign them to Dq Treat without compensation. Dq Treat has the right to use these items without paying royalties, and the franchisee cannot introduce them into the restaurant without Dq Treat's prior written consent.