What is the trainee's obligation regarding Dryject trade secrets received from the franchisor?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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WHEREAS, Trainee wishes to remain, or wishes to become, an employee of Franchisee; and
WHEREAS, Trainee wishes and needs to receive and use Franchisor's Trade Secrets in the course of Trainee's employment in order to effectively perform Trainee's services for Franchisee.
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
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- Franchisor and/or Franchisee shall disclose to Trainee some or all of Franchisor's Trade Secrets relating to DRYJECT SYSTEM.
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- Trainee shall receive Franchisor's Trade Secrets in confidence, maintain them in confidence, and use them only in the course of Trainee's employment by Franchisee and then only in connection with the development and/or maintenance by Franchisee of Business using DRYJECT SYSTEM for so long as Franchisee is licensed by Franchisor to use DRYJECT SYSTEM.
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- Trainee 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.
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- Trainee shall not disclose or permit the disclosure of Franchisor's Trade Secrets except to other employees of Franchisee and only to the limited extent necessary to train or assist other employees of Franchisee who have also signed Non-Disclosure, Non-Solicitation and Non-Competition Agreements or Confidentiality Agreement where appropriate as determined by Franchisor in the development or maintenance of Business using DRYJECT SYSTEM.
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- 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.
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- Trainee shall surrender DRYJECT Operations Manual and any other material containing some or all of Franchisor's Trade Secrets to Franchisee or to Franchisor, upon request, or upon termination of employment by Franchisee, or upon conclusion of the use for which the DRYJECT Operations Manual or other information or material may have been furnished to Trainee.
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- Trainee 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.
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- 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 Trainee of Franchisor's Trade Secrets, Trainee further undertakes and covenants that, during the time he is employed by Franchisee, he will not:
- (a) Directly or indirectly, for himself 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
- (b) Divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of Franchisee's Business(s) to any competitor.
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- Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the Trainee lives or works, in further consideration for the disclosure to Trainee of Franchisor's Trade Secrets and to protect the uniqueness of DRYJECT SYSTEM, Trainee agrees that for two (2) years following the termination of Trainee's employment with Franchisee, Trainee will not without the prior written consent of Franchisor, divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of Franchisee's Franchised Business(s) to any competitor.
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- Franchisee undertakes to use Franchisee's best efforts to ensure that Trainee acts as required by this Agreement.
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- Trainee agrees that in the event of a breach of this Agreement, Franchisor would be irreparably injured and be without an adequate remedy at law. Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions thereof, Franchisor shall be entitled to enforce the provisions of this Agreement against Franchisee and Trainee, and may seek, in addition to any other remedies which are made available to it at law or in equity, including the right to terminate the Franchise Agreement, a temporary and /or permanent injunction and a decree for the specific performance of the terms of this Agreement, without being required to furnish a bond or other security.
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Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a trainee who receives Dryject's trade secrets has several obligations to maintain their confidentiality and protect the Dryject System. The trainee must receive the trade secrets in confidence, maintain them in confidence, and use them only during their employment with the franchisee. This use is restricted to the development or maintenance of the business using the Dryject System, and only as long as the franchisee is licensed to use the Dryject System.
The trainee is prohibited from making copies of any documents or compilations containing Dryject's trade secrets without express written permission from Dryject. Disclosure of these trade secrets is limited to other employees of the franchisee who have also signed Non-Disclosure, Non-Solicitation and Non-Competition Agreements or Confidentiality Agreements, and only to the extent necessary for training or assistance. All information and materials designated as confidential by Dryject are considered trade secrets.
Upon request, or upon termination of employment, the trainee must surrender the Dryject Operations Manual and any other material containing Dryject's trade secrets to the franchisee or Dryject. The trainee must not take any action that could harm the goodwill associated with the Dryject System. These measures are in place to protect the unique qualities of the Dryject System and the confidentiality and value of Dryject's trade secrets.
Furthermore, for two years after termination of employment, the trainee is restricted from engaging in or having a financial interest in any business similar to Dryject within the United States, and from diverting any business, business opportunity, or customer of the franchisee to any competitor, unless prohibited by law. Dryject can seek legal remedies, including injunctions and specific performance, in the event of a breach of these agreements, and the franchisee is expected to ensure the trainee complies with these obligations.