What is the franchisee required to do with Expense Reduction Analysts' Confidential Information?
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, as a franchisee, you are required to hold all Confidential Information in strict confidence. This information is considered proprietary and involves trade secrets of Expense Reduction Analysts. You can only disclose or use the Confidential Information in connection with your duties as a franchisee, and this obligation continues even after you are no longer a franchisee, unless the information becomes publicly known through means other than a breach of the Franchise Agreement.
Expense Reduction Analysts will disclose Confidential Information to you during the training program and ongoing support. You do not acquire any ownership interest in the Confidential Information beyond the right to use it for operating your Expense Reduction Analysts franchise. Using or duplicating the Confidential Information outside of the Expense Reduction Analysts system is considered an unfair method of competition.
Upon request or conclusion of the use for which the information was provided, you must return any material containing Confidential Information to Expense Reduction Analysts. Unless Expense Reduction Analysts provides written approval, you cannot be involved with any business that competes with the Expense Reduction Analysts franchise while you are a franchisee. This includes cost reduction and supplier relationship management consulting or franchising similar businesses. You also agree not to divert business from the franchised business or solicit its customers or employees for any competitive business.
Expense Reduction Analysts also requires franchisees to protect the confidentiality of its ERA Management Information System, which contains confidential information of the franchisor, other franchisees, suppliers, and clients. Access to this system should be limited to employees and subcontractors who need it to operate the business, and Expense Reduction Analysts must receive their names and addresses along with a written confidentiality undertaking. Franchisees must also prevent unauthorized copying or access to the ERA Management Information System.