Is a Dq Treat licensee allowed to use confidential information in any other business or capacity?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
pal office or on its website will control if there is a dispute involving the contents of the Operations Manual. Licensee must, at its expense, comply with all provisions of the Operations Manual.
6.12 Proprietary or Confidential Information.
- (A) Use and Restrictions. Licensee does not acquire any interest in Confidential Information, other than the right to use it in developing and operating the Restaurant under this agreement. The use or duplication of the Confidential Information in any other business constitutes an unfair method of competition. The Confidential Information is proprietary and is Company's trade 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;
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, a licensee is explicitly restricted from using confidential information in any business other than their Dq Treat restaurant. The franchise agreement specifies that the licensee only has the right to use confidential information to develop and operate their Dq Treat restaurant. Using or duplicating this information in any other business is considered an unfair method of competition, as the confidential information is proprietary and a trade secret of Dq Treat.
This restriction extends both during the term of the franchise agreement and even after the agreement ends. The licensee must maintain absolute confidentiality and cannot make unauthorized copies of any confidential information disclosed in written form. Furthermore, they are prohibited from inputting or using any confidential information in any open source artificial intelligence program.
The agreement also requires the licensee to implement procedures to prevent unauthorized use or disclosure of confidential information, including restricting disclosure to restaurant employees. Owners, the Designated Manager, Assistant Managers, and any other employees with access to confidential information must abide by these confidentiality obligations. This ensures that Dq Treat's trade secrets and proprietary information remain protected and are not used to benefit other ventures, maintaining the competitive advantage of the Dq Treat system.