What is the obligation of a Dq Treat licensee regarding the confidentiality of Confidential Information, both during and after the term of the franchise agreement?
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.
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, franchisees have specific obligations regarding confidential information, both during and after the franchise agreement. Licensees must not make unauthorized copies of confidential information disclosed in written form, nor input or use any confidential information in any open source artificial intelligence program. They must also implement reasonable procedures to prevent unauthorized use or disclosure of confidential information, including restricting disclosure to restaurant employees.
Additionally, Dq Treat franchisees are prohibited from reverse engineering, decompiling, or disassembling any of Dq Treat's proprietary products, formulas, ingredients, or software. Franchisees 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.
There is an exception for compelled disclosure. The restrictions on a licensee's disclosure and use of confidential information do not apply to disclosures in judicial or administrative proceedings if the licensee is legally compelled to disclose the information. However, the licensee must use its best efforts to maintain the confidential treatment of the information and provide Dq Treat with the opportunity to obtain a protective order or other assurance of confidential treatment. Confidential information does not include information generally known to the public, unless the licensee or individuals under confidentiality obligations disclosed it.