What is the Face Foundrie franchisee's obligation regarding deleting electronically stored Confidential Information upon termination or expiration of the agreement?

According to Face Foundrie's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, the franchisee is obligated to take appropriate steps to permanently delete and render unusable any Confidential Information stored electronically. This requirement is in addition to the franchisee's obligation to return any copies of documents containing Confidential Information.

This means that a franchisee must ensure that all digital files, databases, or other electronic storage containing proprietary Face Foundrie information are securely and permanently erased. This could involve using specialized software or methods to prevent data recovery. The purpose is to protect Face Foundrie's competitive advantage by preventing unauthorized access to sensitive business data after the franchise relationship ends.

This obligation is a standard practice in franchising to protect the franchisor's intellectual property and trade secrets. Failure to comply with this requirement could result in legal action from Face Foundrie to recover damages or prevent the misuse of confidential information. Prospective franchisees should understand the importance of maintaining data security and having a plan in place for the proper disposal of electronic information upon termination or expiration of the agreement.