Does the Floyds 99 franchisee's obligation to keep the Program confidential end after the termination of the franchise agreement?
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 the 2025 Floyds 99 Franchise Disclosure Document, the franchisee's obligation to keep the Program and any data generated by its use confidential extends both during and after the term of the franchise agreement. This means that even after the franchise agreement terminates, the franchisee must continue to maintain the secrecy of the Program and data, and adhere to security precautions prescribed by Floyds 99 to prevent unauthorized access, use, disclosure, or copying. This obligation survives the termination of the franchise agreement.
This ongoing confidentiality requirement has significant implications for a prospective Floyds 99 franchisee. It means that even after leaving the Floyds 99 system, the former franchisee cannot use or disclose any information related to the Program. This could limit their ability to use similar software or systems in future ventures, as they must avoid any potential overlap or disclosure of confidential information learned during their time with Floyds 99.
Floyds 99 also requires the franchisee to ensure that all employees who have access to the Program sign a written confidentiality agreement. This highlights the importance Floyds 99 places on maintaining the confidentiality of its Program and data. The franchisee is responsible for enforcing these agreements and ensuring that their employees also understand and adhere to the confidentiality requirements, both during and after their employment. This obligation to maintain confidentiality post-termination is not uncommon in franchising, particularly concerning proprietary software or systems like the Program used by Floyds 99.