What security precautions must a Dryer Vent Squad franchisee take to maintain the confidentiality of the Business Management System and Data?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
g and brand standards related to the promotion of the Franchised Business;
- (6) Approving or disapproving of Franchisee requests related to marketing materials and Digital Media that may be used to market the Franchised Business; and
- (7) Establishing and communicating System standards and requirements in the form of the Operations Manual and, as Franchisor, in Franchisor's sole discretion.
4.C. OPERATIONS MANUAL
Franchisor shall provide Franchisee with access to the Operations Manual. The Operations Manual contains, as designated and determined by Franchisor, mandatory and, as applicable, suggested specifications, standards and operating procedures that Franchisor prescribes for Dryer Vent Squad Businesses. Franchisee shall operate the Franchised Business in strict accordance with the standards, specifications, and requirements set forth in the Operations Manual as, such standards, specifications, and requirements including, but not limited to, the Approved Services and Products, System Supplies, and, authorized and designated suppliers, as of the Effective Date of this Agreement, and, as they may be supplemented, modified, changed, and/or replaced in the future and, from time to time, by Franchisor, in Franchisor's Reasonable Business Judgment. Franchisee shall keep and maintain the confidentiality of the Operations Manual and shall keep and maintain all files, data and information contained in the Operations Manual in a secure location and/or in a protected confidential state and, as otherwise directed by Franchisor. The master copy and official version of the Operations Manual is and shall be the copy and/or version maintained and designated by Franchisor in Franchisor's ordinary course of business.
Franchisor shall provide Franchisee with reasonable notice of modifications and changes made to the Operations Manual and, such notice may take form of electronic communications including emails and, if the Operations Manual is maintained on an online web based platform, notifications within said platform. Franchisor shall provide Franchisee with a reasonable period of time, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, to implement change and modifications to the as set forth in
the Operations Manual. Without limitation to the foregoing, Franchisee may only offer and sell the Approved Services and Products and utilize the System Supplies as designated by Franchisor, in Franchisor's Reasonable Business Judgment, in the Operations Manual and, in accordance with the terms, specifications and requirements set forth in the Operations Manual and as Franchisor may supplement and modify the Operations Manual from time to time or, as Franchisor may otherwise designate in writing.
ARTICLE 5 FEES
5.A. INITIAL FRANCHISE FEE
Upon execution of this Agreement Franchisee shall pay to Franchisor a non-recurring initial franchisee fee (the "Initial Franchise Fee") of $35,000 if Franchisee's Operating Territory, as set forth in Schedule 2 of this Agreement, is designated as a Single Territory, or $70,000 if Franchisee's Operating Territory, as set forth in Schedule 2 of this Agreement, is designated as a Double Territory.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad FDD, franchisees are obligated to maintain the confidentiality of the Operations Manual and all files, data, and information contained within it. This information must be kept in a secure location and/or in a protected confidential state, as directed by Dryer Vent Squad. The master copy of the Operations Manual is the one maintained by Dryer Vent Squad. Franchisees receive notice of any modifications or changes to the Operations Manual, potentially through electronic communications or notifications on an online platform. Franchisees are given a reasonable period to implement these changes.
Dryer Vent Squad also defines "Confidential Information" as including non-public methods, specifications, standards, policies, procedures, information, concepts, programs, and systems relating to the development, establishment, marketing, promotion, and operation of the Dryer Vent Squad Business. It also includes information concerning customers, customer lists, email lists, database lists, product sales, operating results, financial performance and other financial data of the Dryer Vent Squad Business, customer lists and information related to the Dryer Vent Squad Business, Business Management System Data, current and future information contained in Dryer Vent Squad Operations Manual made available to the Dryer Vent Squad Business by DVS Holdings, Inc; and production, supply, and service procedures that are not disclosed to the public but used by the Dryer Vent Squad Business.
Upon termination or expiration of the Franchise Agreement, the franchisee must cease using the Business Management System Data. This includes all confidential information, licensed marks, and the Operations Manual. Franchisees must also discontinue using any methods, procedures, or techniques associated with the Dryer Vent Squad system, especially those in which Dryer Vent Squad possesses proprietary rights or are considered trade secrets. These stipulations ensure the protection of Dryer Vent Squad's proprietary information and maintain the integrity of the franchise system.