What steps must a Dryer Vent Squad franchisee take to prevent violations of the Confidentiality Agreement?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
ed to this Agreement as Exhibit 1; and (b) Franchisee's directors, officers, employees and agents where disclosure of the Know-How was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality Agreement in the form attached as Exhibit 3.
6.C. RESTRICTIVE COVENANTS: CONFIDENTIAL INFORMATION
Franchisee agrees that, at all times, both during the Term of this Agreement and after its expiration or termination, Franchisee: (a) shall not use the Confidential Information in any business or capacity other than the Dryer Vent Squad Business operated by Franchisee; (b) shall maintain the confidentiality of the Confidential Information at all times; (c) shall not make unauthorized copies of documents containing any Confidential Information; (d) shall take such reasonable steps as Franchisor may ask of Franchisee from time to time to prevent unauthorized use or disclosure of the Confidential Information; and (e) shall stop using the Confidential Information immediately upon the expiration, termination or Transfer of this Agreement. Franchisee agrees that the foregoing covenants and obligations shall also apply to: (a) Franchisee's Owners and that Franchisee's Owners shall each execute and deliver to Franchisor the Franchise Owner Agreement and Individual Guaranty in the form attached to this Agreement as Exhibit 1; and (b) Franchisee's directors, officers, employees and agents where disclosure of the Confidential Information was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality
Agreement in the form attached as Exhibit 3.
**6.D.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, franchisees must adhere to specific measures to safeguard confidential information, both during the term of the agreement and after its expiration or termination. These measures include using the confidential information solely for operating the Dryer Vent Squad business, maintaining the confidentiality of the information at all times, and refraining from making unauthorized copies of documents containing confidential information.
Dryer Vent Squad franchisees are required to take reasonable steps, as directed by the franchisor, to prevent unauthorized use or disclosure of confidential information. Upon expiration, termination, or transfer of the agreement, the franchisee must immediately cease using the confidential information. These obligations extend not only to the franchisee but also to their owners, who must execute a Franchise Owner Agreement and Individual Guaranty, as well as to directors, officers, employees, and agents who have access to confidential information and have signed a Confidentiality Agreement.
Exhibit 3 of the Franchise Agreement provides a sample Confidentiality Agreement that Dryer Vent Squad franchisees may use. However, the FDD stipulates that franchisees should have this agreement reviewed and approved by an independent local attorney before using it with an employee or contractor. This agreement ensures that employees and contractors of the franchisee also understand and agree to protect the confidential information related to the Dryer Vent Squad business.
Failure to comply with these confidentiality obligations can lead to legal repercussions, as the franchisor can seek injunctive relief for breaches of these covenants. This underscores the importance of Dryer Vent Squad franchisees taking proactive measures to protect the franchisor's confidential information and ensuring that all parties involved understand and adhere to the confidentiality requirements.