Does Eos Worldwide consider 'Confidential Information' to be trade secrets?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, the company considers Confidential Information to be confidential and its trade secrets. The FDD specifies that Eos Worldwide will provide franchisees access to a variety of information concerning the EOS Franchise System, including the Operations Manual, Franchise System Standards, methods for operating the Franchised Business, equipment and supplies, recruitment and training methods, client information, billing methods, financial information, pricing methods, business plans, and information about suppliers.
However, the FDD also outlines exceptions to what is considered Confidential Information. Information that was already publicly known, becomes publicly known without franchisee action, is obtained from a third party without confidentiality duties, or is independently developed without reference to the Confidential Information is excluded. The franchisee bears the burden of proving that any information falls under these exceptions.
Eos Worldwide emphasizes that it has invested significant resources in developing and processing the Confidential Information. This underscores the importance of protecting this information and the potential legal ramifications for franchisees who fail to maintain its confidentiality. Prospective franchisees should carefully review the definition of Confidential Information and the associated restrictions to fully understand their obligations under the franchise agreement.