Does the Floyds 99 franchise agreement require the franchisee to establish and maintain security precautions to maintain the secrecy of the Program?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee shall keep the Program and any data generated by the use of the Program confidential during and after the term hereof, and shall establish and maintain such security precautions as are prescribed by the Franchisor from time to time to maintain the secrecy of the Program and any data generated by the use of the Program, and to prevent the unauthorized access to or use, disclosure or copying of the Program or any data generated by the use of the Program.
The Franchisee shall cause each of its employees who has access to the Program to execute a written confidentiality agreement in a form prescribed or approved in writing by the Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees are required to maintain the secrecy of the Program, which likely refers to proprietary software or systems used in the business. The franchise agreement states that the franchisee must establish and maintain security precautions as prescribed by Floyds 99 to keep the Program and any data generated by it confidential, both during and after the term of the franchise agreement.
This means a Floyds 99 franchisee is responsible for protecting the Program from unauthorized access, use, disclosure, or copying. These security precautions are those that Floyds 99 specifies from time to time. Additionally, the franchisee must ensure that any employees with access to the Program sign a confidentiality agreement in a form that Floyds 99 prescribes or approves.
This requirement is fairly standard in franchising, as franchisors need to protect their intellectual property and trade secrets. For a prospective Floyds 99 franchisee, this means understanding and implementing the required security measures, ensuring employee compliance through confidentiality agreements, and staying updated on any changes to security protocols that Floyds 99 may implement.