What is the licensee of a Dq Treat required to do with Confidential Information after the agreement is terminated?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
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, after the termination of the agreement, the licensee has several obligations regarding confidential information. The licensee must not disclose the confidential information to others. They are also prohibited from making unauthorized copies of any confidential information disclosed in written form, and they cannot input or use any confidential information in any open source artificial intelligence program.
Furthermore, the Dq Treat licensee must implement reasonable procedures to prevent unauthorized use or disclosure of confidential information, including placing restrictions on disclosure to restaurant employees. The licensee is barred from reverse engineering, decompiling, or disassembling any of Dq Treat's proprietary products, formulas, ingredients, or software.
Finally, the licensee must ensure that all owners, the designated manager, assistant managers, and any other employees with access to confidential information adhere to the confidentiality obligations outlined in the agreement. However, these restrictions do not apply if the licensee is legally compelled to disclose confidential information in judicial or administrative proceedings, provided they make their best effort to maintain confidentiality and give Dq Treat the opportunity to obtain a protective order.