What does the Exit franchise agreement require regarding confidentiality statements from Sales Representatives, employees, officers, directors, members and partners?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (B) All information in the Training Manuals shall be deemed confidential and is disclosed to Franchisee only in the context of this Agreement, including the confidentiality requirements set forth in Section 20 of this Agreement. Franchisee shall at all times treat the Training Manuals and any other manuals created or approved for or used in the operation of Franchisee's business, and the information contained therein as confidential, and shall use all reasonable efforts to maintain the manuals and information as secret and confidential. Franchisee shall not at any time copy, duplicate, record or otherwise reproduce any of these materials, in whole or in part, except as may be otherwise provided in the Training Manuals, and shall not make these materials available to any unauthorized person. Franchisee shall take all reasonable steps necessary to prevent the unauthorized disclosure of the confidential information, including requiring the execution of confidentiality statements by its Sales Representatives, employees, officers, directors, members and partners in such form as may be provided by EXIT or Subfranchisor.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are required to take necessary steps to prevent unauthorized disclosure of confidential information. This includes requiring confidentiality statements from their Sales Representatives, employees, officers, directors, members, and partners. The specific form of these statements must be provided by Exit or its subfranchisor.
This requirement ensures that sensitive information regarding Exit's operations and business practices remains protected. By mandating confidentiality agreements, Exit aims to maintain the integrity of its system and prevent the leakage of valuable data to competitors or unauthorized parties. This is a standard practice in franchising, as franchisors need to protect their intellectual property and trade secrets.
For a prospective Exit franchisee, this means they will need to implement a process for obtaining and managing these confidentiality statements. They should familiarize themselves with the forms provided by Exit and ensure that all relevant personnel execute these agreements. Failure to comply with this requirement could potentially lead to breaches of confidentiality and legal repercussions.