What guidelines must an Exit franchisee comply with to protect Confidential Information?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
(except in the performance of this Agreement) until such time as the information ceases to be a Trade Secret through no fault of Franchisee, shall diligently protect any and all Trade Secrets against loss by inadvertent or unauthorized disclosure, and shall comply with guidelines established by Company for the purpose of protecting such information.
Franchisee agrees that, during the term of this Agreement and all renewals and extensions of this Agreement, and after termination, expiration, or non-renewal of this Agreement, Franchisee shall hold all Confidential Information that is not a Trade Secret in strictest confidence, shall not use or disclose such Confidential Information (except in the performance of this Agreement), shall diligently protect any and all Confidential Information against loss by inadvertent or unauthorized disclosure, and shall comply with guidelines established by EXIT and Subfranchisor for the purpose of protecting the information.
21. FRANCHISEE'S COVENANTS NOT TO COMPETE
21.1. In-Term Covenant Not to Compete
Franchisee and Franchisee's shareholders, partners, members, directors, officers and guarantors of this Agreement will not, during the term of this Agreement and all renewals and extensions of this Agreement, on their own account or as an employee, agent, consultant, partner, officer, director or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in or assist any person or entity engaged in any real estate business, or
other related business that is in any way competitive with or similar to the business conducted by EXIT or EXIT subfranchises or franchises, nor offer products or services that are offered by EXIT.
**21.2.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees must adhere to specific guidelines to protect confidential information, both during the term of the agreement and after its termination, expiration, or non-renewal. For information that is not considered a trade secret, the franchisee must hold it in the strictest confidence, avoiding any use or disclosure except when performing the agreement. They are also required to diligently protect this information against loss through inadvertent or unauthorized disclosure and must comply with any guidelines established by Exit for protecting such information.
For Exit's trade secrets, franchisees must maintain the strictest confidence and avoid using or disclosing them at any time, unless the information is no longer a trade secret through no fault of their own. Franchisees are also responsible for diligently protecting trade secrets from loss due to inadvertent or unauthorized disclosure and must follow any guidelines established by Exit to safeguard this information.
Furthermore, all information within Exit's training manuals is deemed confidential and is disclosed to franchisees solely within the context of the franchise agreement, including the confidentiality requirements outlined in Section 20. Franchisees must always treat the training manuals and any other approved manuals used in their business operations, along with the information contained within, as confidential. They must also use all reasonable efforts to keep these manuals and information secret and confidential. Franchisees are prohibited from copying, duplicating, recording, or reproducing any of these materials, either in whole or in part, unless otherwise provided in the training manuals, and they cannot make these materials available to any unauthorized person. Franchisees must take all reasonable steps to prevent unauthorized disclosure of confidential information, including requiring confidentiality statements from their sales representatives, employees, officers, directors, members, and partners in a form provided by Exit or its subfranchisor.
These measures are typical in franchising to protect the franchisor's proprietary information and maintain a competitive advantage. Prospective Exit franchisees should carefully review Section 20 of the franchise agreement and any related guidelines to fully understand their obligations regarding confidential information and trade secrets.