Is client information considered 'Confidential Information' by Eos Worldwide?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
sent to economically questionable transactions where reasonable to do so. Without limitation of the foregoing, you waive any claim that any action we take in relation to a proposed Transfer to protect our business interests constitutes tortious interference with contractual or business relationships and you shall indemnify us, hold us harmless from, and defend us against any and all claims by your transferee in connection with any such reasonable action we take in relation to a proposed Transfer to protect our business interests, including claims for tortious interference with contractual or business relationships.
16. RESTRICTIVE COVENANTS.
16.1 Confidential Information.
During the Term, we will give you, and you will have access to, a variety of information concerning us, our affiliates and the EOS Franchise System including: the Operations Manual; Franchise System Standards; Services; methods for operating, managing, developing, performing, or coordinating any aspect of the Franchised Business; equipment or supplies, including, without limitation, those used in the provision of the Services; recruitment, training, marketing or compensation methods; Client and prospective Client information and lists; referral sources; billing and collection methods; financial information; pricing methods, business plans and other information about us, our affiliates and information about our approved suppliers; strategic partners, vendors, employees, and independent contractors and any other information we deem confidential (collectively, the "Confidential Information"). However, Confidential Information will not include any information which (i) was publicly known and made generally available in the public domain prior to the disclosure to you; (ii) becomes publicly known and made generally available after disclosure to you through no action or inaction of you, your Personnel or the Franchised Business; (iii) is obtained from a third party lawfully in possession of such information and without duties of confidentiality with respect to such information; or (iv) is independently developed without use of or reference to the any Confidential Information. Specific information shall not be deemed subject to any of the foregoing exceptions merely because it is embraced by more general information subject to one or more of such exceptions, nor shall specific combinations of information be deemed subject to any of the foregoing exceptions merely because the individual items which make up the combination are embraced by one or more of such exceptions. You will bear the burden of proof that Confidential Information falls into any one
of the above exceptions. We consider the Confidential Information to be confidential and our trade secrets. You acknowledge that we have expended and continue to expend great amounts of time, money and effort in devising and processing the Confidential Information.
16.2 Restrictions On Use.
You will use your best efforts and diligence both during and after the Term to protect the Confidential Information and our goodwill. You will not, directly or indirectly, use (for yourself or others) or disclose any of the Confidential Information to any other person or entity except as is necessary for the operation of your Franchise in accordance with our Franchise System Standards; provided, that, in each instance, such person or entity, including any Personnel, is on a strict need to know basis and that prior to any disclosure of Confidential Information to such person or entity, you shall advise such them of the confidential nature of such Confidential Information, your and their obligations hereunder and shall ensure that such person or entity is bound by non-use and non-disclosure obligations not materially less protective than those set forth in this Agreement. You will remain liable for any failure of any such person's or entity's failure to comply with the non-use and non-disclosure obligations set forth in this Agreement as if such failure was your own act or omission.
16.3 Mandatory Requests For Information.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, client information is considered confidential. Specifically, Client and prospective Client information and lists are included in the definition of "Confidential Information" that Eos Worldwide provides to franchisees. This extends to information obtained through the Eos Worldwide website, including access codes and identification codes, as well as any data collected via E-Commerce, such as Client Data, click-stream data, cookies, and user data.
Eos Worldwide emphasizes the importance of protecting this confidential information, stating that they have expended significant time, money, and effort in developing and processing it. Franchisees are responsible for ensuring that this information is used only in accordance with the franchise agreement. Eos Worldwide retains ownership of all Client Data collected or received during the term of the agreement, licensing it back to the franchisee for use in operating the Franchised Business.
Furthermore, franchisees must comply with all applicable laws, regulations, and industry standard best practices regarding Client Data. The FDD also states that the use of artificial intelligence (AI) in the Franchised Business must be conducted ethically, and franchisees are prohibited from using AI solutions to access, use, or transmit Confidential Information or Intellectual Property without prior written authorization, or to collect, use, disclose, or otherwise utilize Client Data in any way not expressly permitted under the Agreement and applicable data privacy laws. This underscores the importance Eos Worldwide places on protecting client information and maintaining data security within its franchise system.
These stipulations mean that an Eos Worldwide franchisee must exercise extreme caution in handling client data, ensuring compliance with data privacy laws and the specific terms outlined in the franchise agreement. Failure to protect this information could lead to breaches of contract and potential legal repercussions. Prospective franchisees should carefully review the sections of the FDD pertaining to Confidential Information, Client Data, and data security to fully understand their obligations and the potential risks involved.