What is the franchisee prohibited from doing with Expense Reduction Analysts' Confidential Information?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor possesses certain proprietary and confidential information relating to the operation of the Franchised Business and System generally, including without limitation: the Franchisor's proprietary and confidential Manuals and other manuals providing guidelines, standards and specifications related to the establishment and operation of the Franchised Business (collectively, the "Manuals"); the Franchisor's proprietary training materials and programs, as well as proprietary marketing methods and other instructional materials, trade secrets; information related to any other proprietary methodology or aspects of the System or the establishment and continued operation of the Franchised Business; financial information; any and all customer lists, contracts and other customer information obtained through the operation of the Franchised Business and other Franchised Businesses; any information related to any type of proprietary software that may be developed and/or used in the operation of with the Franchised Business; and any techniques, methods and know-how related to the operation of Franchised Business or otherwise used in connection with the System, which includes certain trade secrets, copyrighted materials, methods and other techniques and know-how (collectively, the "Confidential Information").
Any other information, knowledge, know-how, and techniques which the Franchisor specifically designates as confidential will also be deemed to be Confidential Information for purposes of this Agreement.
As [INSERT TITLE WITH RESPECT TO FRANCHISEE] of the Franchisee, the Franchisor and the Franchisee will disclose the Confidential Information to me in furnishing to me the training program and subsequent ongoing training, the Manuals, and other general assistance during the term of this Agreement.
I will not acquire any interest in the Confidential Information, other than the right to utilize it in the operation of the Franchised Business during the term hereof, and the use or duplication of the Confidential Information, in whole or in part, for any use outside the System would constitute an unfair method of competition.
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, as a franchisee, you are prohibited from acquiring any interest in the Confidential Information, other than the right to utilize it in the operation of the Franchised Business during the term of the agreement. The use or duplication of the Confidential Information, in whole or in part, for any use outside the Expense Reduction Analysts system would constitute an unfair method of competition.
Expense Reduction Analysts considers its Confidential Information proprietary and involving trade secrets. As a franchisee, you must agree to hold all Confidential Information in strict confidence, as well as any other information designated by Expense Reduction Analysts as confidential. Unless Expense Reduction Analysts agrees otherwise in writing, you can only disclose or use the Confidential Information in connection with your duties as an Expense Reduction Analysts franchisee.
Even after you cease to be a franchisee, you must continue not to disclose any Confidential Information. You also cannot use any such information, even after you cease to be in that position, unless you can demonstrate that such information has become generally known or easily accessible other than by breaching your obligations under the Franchise Agreement. Upon request or conclusion of the use for which the information or material may have been furnished, you will surrender any material containing some or all of the Confidential Information to Expense Reduction Analysts.
While in your position with Expense Reduction Analysts, you cannot, unless otherwise approved in writing by Expense Reduction Analysts, own, maintain, engage in, be employed by, or have any interest in any other business that is involved in cost reduction and supplier relationship management consulting similar to the Franchised Business. This also applies to businesses that feature, offer, or sell products and services similar to those offered and sold by the Franchised Business or other ERA Group franchises, or that grants or has granted franchises or licenses, or establishes or has established joint ventures, for one or more Competing Businesses. You also agree that you 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.