What is the Floyds 99 franchisee required to do to maintain the secrecy of the Program?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ii) copy or reproduce the Program, any component thereof or any data generated by the use of the Program, in any manner, except for one copy of the Program for normal back-up and operations thereof; provided nothing contained herein shall prohibit the Franchisee from using the data generated by the Program to the extent reasonably necessary to comply with local, state and federal law and for usual and customary business purposes.
- e. 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. The Franchisee shall immediately inform the Franchisor in writing if an employee breaches the written confidentiality agreement or otherwise violates the terms and conditions of this Section 16.1, or if the Franchisee learns of any actual or possible unauthorized disclosure of the Program or any data generated by the use of the Program, such as the loss or theft of any tangible medium (such as a diskette), documentation or other component thereof.
- f.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees have several obligations to maintain the secrecy of the Program. Franchisees must keep the Program and any data generated by it confidential both during and after the term of the franchise agreement. They are required to establish and maintain security precautions as prescribed by Floyds 99 to prevent unauthorized access, use, disclosure, or copying of the Program or its data.
Specifically, franchisees cannot sell, assign, lease, license, market, or commercially exploit the Program or any of its components. Access to the Program or its data cannot be disclosed or granted to any third party unless Floyds 99 has approved the third party in writing, and the third party has agreed to keep the Program confidential. Franchisees are permitted to make one copy of the Program for backup and operational purposes, but they are otherwise prohibited from copying or reproducing the Program or its data. However, franchisees are allowed to use the data generated by the Program to comply with laws and for customary business purposes.
Furthermore, all employees of the Floyds 99 franchisee who have access to the Program must sign a written confidentiality agreement in a form prescribed or approved by Floyds 99. These measures collectively aim to protect the proprietary information and systems of Floyds 99, ensuring that the Program remains confidential and is not misused or disclosed to unauthorized parties, which could harm the franchise system.