Does the confidentiality clause in the Fly To Fit franchise agreement have any exceptions?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
osecution or defense of any Action related to possible infringement of or by the Marks.
- 12.4 Name. If Franchisee is an entity, it shall not use the words "Fly To Fit" or any confusingly similar words in its legal name.
ARTICLE 13. COVENANTS
13.1 Confidential Information. With respect to all Confidential Information, Franchisee shall (a) adhere to all procedures prescribed by Fly To Fit Franchise for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business; (c) not use any such information in any other business or in any manner not specifically authorized in writing by Fly To Fit Franchise, (d) exercise the highest degree of diligence and effort to maintain the confidentiality of all such information during and after the term of this Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or use of Confidential Information. Franchisee acknowledges that all Confidential Information is owned by Fly To Fit Franchise (except for Confidential Information which Fly To Fit Franchise licenses from another person or entity). This Section will survive the termination or expiration of this Agreement indefinitely.
13.2 Covenants Not to Compete.
- (a) Restriction In Term.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to the 2024 Fly To Fit Franchise Disclosure Document, the confidentiality clause in the franchise agreement has some exceptions. While franchisees must generally maintain the confidentiality of all information, they are permitted to disclose confidential information to their employees to the extent necessary for the operation of the business. However, this disclosure is contingent upon adhering to all security procedures prescribed by Fly To Fit for maintaining confidentiality.
Fly To Fit franchisees are explicitly prohibited from using confidential information in any other business or in any manner not specifically authorized or approved in writing by Fly To Fit. This restriction applies both during and after the term of the Franchise Agreement, emphasizing the enduring nature of the confidentiality obligation. Franchisees must exercise the highest degree of diligence and make every effort to maintain confidentiality, and they are required to promptly report any unauthorized disclosure or use of confidential information.
Furthermore, the Franchise Agreement specifies that all customer data and other non-public data generated by the business is considered confidential information exclusively owned by Fly To Fit. Fly To Fit licenses this data back to the franchisee without charge, but solely for use in connection with the business during the term of the agreement. This underscores Fly To Fit's control over sensitive business information and limits the franchisee's use of such data to the operational scope of the franchise.