What is the duration for which the Signer must maintain the confidentiality of Dryject's Trade Secrets?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Signer shall receive Franchisor's Trade Secrets in confidence, maintain them in confidence, and shall use them only in connection with the development and/or maintenance by Franchisee of the Franchised Business using DRYJECT SYSTEM for so long as Franchisee is licensed by Franchisor to use DRYJECT SYSTEM.
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- Except to the extent prohibited by the laws of the state where the Franchised Business is located, in order to protect the goodwill and unique qualities of DRYJECT SYSTEM and the confidentiality and value of Franchisor's Trade Secrets, and in consideration for the disclosure to Signer of Franchisor's Trade Secrets, Signer further undertakes and covenants that, during the time Franchisee is a franchisee of Franchisor and for the two (2) years following the termination or expiration of Franchisee's Franchise Agreement, Signer will not:
- (a) Directly or indirectly, for himself/herself or through, on behalf of or in conjunction with any person, partnership or business entity, engage in or acquire any financial or beneficial interest in (including interest in business entities, partnerships, trusts, unincorporated associations or joint ventures), advise, help or make loans to any entity involved in business which is the same as or similar to that conducted by "DryJect"® which business is, or is intended to be located, within the United States; or
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, a Signer who has access to Dryject's trade secrets must maintain their confidentiality while the franchisee is licensed to use the Dryject system. Additionally, for a period of two years following the termination or expiration of the franchisee's Franchise Agreement, the Signer is restricted from engaging in or having a financial interest in any business similar to Dryject within the United States.
This means that anyone who gains access to Dryject's confidential information, such as employees or contractors, is legally bound to protect that information during the term of the franchise agreement. This obligation extends beyond the agreement's term, with a two-year restriction on participating in competing businesses. This measure aims to protect Dryject's competitive advantage and proprietary information.
For a prospective Dryject franchisee, this highlights the importance of carefully selecting and training individuals who will have access to the Dryject system and trade secrets. Franchisees must ensure that these individuals understand and agree to the confidentiality terms, as breaches could lead to legal repercussions. The two-year non-compete clause for Signers also ensures that former employees or contractors cannot immediately leverage their knowledge of Dryject's system to benefit a competitor.