To whom can a Dryject franchisee disclose confidential information?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
it is anticipated that Signer may have access to learn Franchisor's Trade Secrets as Franchisee develops and maintains Franchisee's Business using DRYJECT SYSTEM.
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
-
- Franchisee may disclose to Signer some or all of Franchisor's Trade Secrets relating to DRYJECT SYSTEM.
-
- 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.
-
- Signer shall not at any time make copies of any documents or compilations containing some or all of Franchisor's Trade Secrets without the express written permission of Franchisor.
-
- Signer shall not disclose or permit the disclosure of Franchisor's Trade Secrets to anyone.
-
- That all information and materials, including without limitation, specifications, techniques and compilations of data which Franchisor shall designate as confidential shall be deemed Franchisor's Trade Secrets for the purposes of this Agreement.
-
- Signer shall not, directly or indirectly, do any act or omit to do any act, which would or would likely to be injurious or prejudicial to the goodwill associated with DRYJECT SYSTEM.
-
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a franchisee's ability to disclose confidential information is limited. The franchisee can disclose Dryject's trade secrets to a 'Signer,' who is someone anticipated to learn these secrets as the franchisee develops their business. However, this 'Signer' is strictly prohibited from further disclosing the trade secrets to anyone else.
Furthermore, the franchisee can disclose confidential information to their own employees or contractors, but only if those individuals need the information to perform their job functions. Before disclosing any confidential information, the franchisee must ensure that these employees or contractors sign Confidentiality and Non-Compete Agreements, using the forms provided in Dryject's Operations Manual, and a copy of the signed agreement must be forwarded to Dryject.
These restrictions are in place to protect the goodwill and unique qualities of the Dryject system, as well as the confidentiality and value of Dryject's trade secrets. The FDD emphasizes that unauthorized use or disclosure of confidential information can cause incalculable and irreparable injury to Dryject. This is a common practice in franchising to maintain a competitive advantage and protect proprietary business methods.