What level of care is Dq Treat required to use to protect the confidentiality of the Discloser's confidential information?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Protection of Confidential Information. The Recipient must use the same degree of care that it uses to protect the confidentiality of its own confidential information, but in no event less than reasonable care, or the level of care required by Law, not to disclose or use any Confidential Information of the Disclosing Party for any purpose outside the scope of these SSS Terms. The Recipient must make commercially reasonable efforts to limit access to Confidential Information of Discloser to those of its employees and contractors who need such access for purposes consistent with these SSS Terms, and in the case of PAR, who have signed confidentiality agreements with Recipient no less restrictive than the confidentiality terms of these SSS Terms or who are directed to comply with the provisions of these SSS Terms.
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 the 2025 Dq Treat FDD, when acting as the Recipient of confidential information, a franchisee must use at least reasonable care, or the level of care required by Law, to protect the confidentiality of the Disclosing Party's confidential information. This standard ensures that franchisees take active steps to prevent unauthorized disclosure or use of sensitive information.
Specifically, the franchisee must use the same degree of care that it uses to protect its own confidential information, but no less than reasonable care. This means Dq Treat franchisees must treat the franchisor's confidential information with a level of protection that is consistent with how they safeguard their own proprietary information. If a higher standard of care is mandated by law, the franchisee must adhere to that stricter standard.
This obligation extends to limiting access to the Discloser's Confidential Information to only those employees and contractors who need it to fulfill their obligations under the SSS Terms. In the case of PAR, these individuals must have signed confidentiality agreements that are no less restrictive than the confidentiality terms outlined in the SSS Terms or be directed to comply with the provisions of these SSS Terms. This ensures that confidentiality is maintained within the franchisee's organization.