Does the definition of 'Information' for Exit include financial information?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- h) Information and Confidential Information. As used in this Agreement, the term "Information" means all information used or compiled by Sales Representative and any other information written or oral made known to Sales Representative by or on behalf of EXIT [Trade Name] or any customer of EXIT [Trade Name], including without limitation, all of the EXIT [Trade Name]'s financial information, employee lists and data, records and files, customer and prospective contact lists, requests for quotes, quotes, contracts of any nature, corporate procedures, sales plans, programs, materials, manuals, rosters, forms, brochures and other training, listing, sales and marketing materials of EXIT [Trade Name] and any information.
All Information shall be considered "Confidential Information," except Information which (i) was or becomes publicly known without disclosure by Sales Representative, or (ii) was or is acquired from a third party provided that the third party in providing the Information has not breached any agreement with, or acted in derogation of, any confidential relationship with EXIT [Trade Name] or EXIT.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the term "Information" includes all information used or compiled by the Sales Representative, as well as any information, written or oral, made known to the Sales Representative by or on behalf of Exit or any Exit customer. This definition specifically includes all of Exit's financial information.
This means that as a Sales Representative, you are responsible for protecting a wide array of data related to Exit's operations. This includes not only obvious proprietary information, but also financial data, employee lists, customer contact details, sales plans, and marketing materials. The scope of "Information" is very broad, covering virtually any data related to Exit's business.
All of this information is considered "Confidential Information" unless it becomes publicly known without your disclosure or is acquired from a third party who has not breached any agreement or confidential relationship with Exit. This places a significant responsibility on the Sales Representative to safeguard Exit's sensitive data.
For a prospective franchisee, this highlights the importance of understanding and adhering to the confidentiality obligations outlined in the franchise agreement. Failure to protect this information could have legal and financial repercussions.