Does the obligation to maintain the confidentiality of Confidential Information for Dryject extend beyond the termination of the Franchise Agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidential Information. You must maintain all Confidential Information as confidential both during and after the term of the Franchise Agreement. "Confidential Information" includes all information, data, techniques and know-how designated or treated by us as confidential and includes the Manual. You may not at any time disclose, copy or use any Confidential Information except as specifically authorized by us. Under the Franchise Agreement, you agree that all information, data, techniques and know-how developed or assembled by you or your employees or agents during the term of the Franchise Agreement and relating to the System will be deemed a part of the Confidential Information protected under the Franchise Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–37)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the obligation to maintain the confidentiality of Confidential Information extends both during and after the term of the Franchise Agreement. Confidential Information includes all information, data, techniques, and know-how designated or treated by Dryject as confidential, explicitly including the Manual.
This means that a prospective Dryject franchisee is legally bound to protect Dryject's Confidential Information not only while operating the franchise but also after the franchise agreement ends, regardless of the reason for termination. This obligation restricts the franchisee from disclosing, copying, or using any Confidential Information without Dryject's specific authorization, even after they are no longer a franchisee.
Furthermore, any information, data, techniques, and know-how developed or assembled by the franchisee, their employees, or agents during the term of the Franchise Agreement that relates to the Dryject System is also considered part of the Confidential Information. This clause ensures that any improvements or innovations made during the franchise operation also fall under the confidentiality protection, preventing franchisees from using or sharing these developments independently after the agreement concludes. This is a fairly standard practice in franchising to protect the franchisor's intellectual property and trade secrets.