Is the Confidential Information of Expense Reduction Analysts considered proprietary?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
The Confidential Information is proprietary, involves trade secrets of the Franchisor, and is disclosed to me solely on the condition that I agree, and I do hereby agree, that I shall hold in strict confidence all Confidential Information and all other information designated by the Franchisor as confidential.
Unless the Franchisor otherwise agrees in writing, I will disclose and/or use the Confidential Information only in connection with my duties as [INSERT TITLE] of the Franchisee, and will continue not to disclose any such information even after I cease to be in that position and will not use any such information even after I cease to be in that position unless I can demonstrate that such information has become generally known or easily accessible other than by the breach of an obligation of Franchisee under the Franchise Agreement.
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- I will surrender any material containing some or all of the Confidential Information to the Franchisor, upon request, or upon conclusion of the use for which the information or material may have been furnished.
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- Except as otherwise approved in writing by the Franchisor, I shall not, while in my position with the Franchisee, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or limited liability company, own, maintain, engage in, be employed by, or have any interest in any other business that: (i) is involved in cost reduction and supplier relationship management consulting similar to the Franchised Business and/or that features, offers and/or sells products and services similar to the those offered and sold by the Franchised Business and/or other ERA Group franchises (a "Competing Business"); or (iii) grants or has granted franchises or licenses, or establishes or has established joint ventures, for one or more Competing Businesses. I also agree that I will not undertake any action to divert business from the Franchised Business to any Competing Business or solicit any of the former customers or employees of Franchisee for any competitive business purpose. All parties acknowledge and agree that there is no intent to prohibit me from obtaining employment or engagement with another franchisee of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the Confidential Information is considered proprietary and involves trade secrets of the Franchisor. The disclosure of this information is conditional upon the agreement that the recipient holds it in strict confidence.
As a prospective franchisee, this means you will have access to sensitive information that Expense Reduction Analysts considers crucial to their business model. This information is not publicly available and provides a competitive advantage. You are obligated to protect this information and only use it in connection with your duties as a franchisee.
The agreement specifies that even after you are no longer a franchisee, you must continue to maintain the confidentiality of the information, unless it becomes generally known through means other than a breach of your obligations. Upon request or termination of your franchise, you must return any materials containing the confidential information to Expense Reduction Analysts.
Furthermore, while affiliated with Expense Reduction Analysts, you are generally prohibited from engaging in any competing business that offers similar cost reduction or supplier relationship management consulting services, or that grants franchises for such businesses. This restriction aims to prevent you from using Expense Reduction Analysts' confidential information to benefit a competing venture. However, the agreement clarifies that you are not prohibited from seeking employment or engagement with another Expense Reduction Analysts franchisee.