Are customer lists considered trade secrets for a Dryject franchise?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Any and all customer lists and their contents relating to the Franchised Business, whether compiled or developed by You or any other person, are owned by Us, constitute confidential information and are Our proprietary property (whether supplied by Us or not) and You shall not use the customer lists for any purpose whatsoever other than in the normal conduct of the Franchised Business prior to any default under this Agreement, or termination or expiration of this Agreement and for no other purpose and You must require any of Your employees, agents and independent contractors who have access to customer lists to sign a confidentiality agreement. To the extent that You may have or claim any right, title or interest in or to such customer lists and contents, You agree to, and do hereby, assign to Us all of Your right, title and interest therein. You will, upon demand, promptly deliver to Us a complete list of current and former customers, including name, telephone number, complete mailing address, frequency of service, last date serviced and price of service, and other information concerning such customers as requested by Us. You expressly acknowledge that Your ability to operate, develop and expand the Franchised Business is based largely on the goodwill of the Marks and know-how embodied in the DryJect System. Accordingly, You agree that We are the sole owner of all customer lists and relationships and all other goodwill arising from Your operation of the Franchised Business. Any attempt by You to offer any services or products similar to those provided by the Franchised Business to any customers or prospective customers of the Franchised Business following any expiration or termination of this Agreement shall be a violation of Our rights in such customer lists and relationships and goodwill. You agree that in the event of any such action or threatened action by You, We shall be entitled to a preliminary or permanent injunction or other equitable relief to restrain such actions, and to recover Our damages equal to the amount of profits received by You from any such action in violation of Our rights.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, customer lists are considered both confidential information and Dryject's proprietary property. The FDD states that any and all customer lists and their contents relating to the franchised business are owned by Dryject, regardless of who compiled or developed them.
As a Dryject franchisee, you are prohibited from using the customer lists for any purpose other than the normal operation of the franchised business, and only prior to any default, termination, or expiration of the franchise agreement. You must also ensure that any employees, agents, or independent contractors who have access to these lists sign a confidentiality agreement. Furthermore, you are required to assign all rights, titles, and interests in the customer lists to Dryject.
Upon demand, you must promptly provide Dryject with a complete list of current and former customers, including their names, telephone numbers, complete mailing addresses, service frequency, last service date, service price, and any other requested information. The FDD emphasizes that the ability to operate, develop, and expand the franchised business relies heavily on the goodwill of Dryject's marks and know-how, making Dryject the sole owner of all customer lists, relationships, and goodwill arising from the operation of the franchised business.
Any attempt to offer similar services or products to Dryject's customers or prospective customers after the expiration or termination of the agreement is a violation of Dryject's rights. In such cases, Dryject is entitled to a preliminary or permanent injunction or other equitable relief to restrain such actions and recover damages equal to the profits received from the violation of their rights.