To what extent can a Fly To Fit franchisee disclose Confidential Information to its employees?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, a franchisee can disclose confidential information to its employees only to the extent necessary for the operation of the business. The franchisee must adhere to all procedures prescribed by Fly To Fit for maintaining confidentiality.
Fly To Fit franchisees are prohibited from using confidential information in any other business or in any manner not specifically authorized in writing by Fly To Fit. Franchisees must exercise the highest degree of diligence and effort to maintain the confidentiality of all such information both during and after the term of the Franchise Agreement. They are also prohibited from copying or reproducing any confidential information and must promptly report any unauthorized disclosure or use of confidential information.
This obligation to protect confidential information extends beyond the franchisee to any guarantor, who also must adhere to Fly To Fit's security procedures, limit disclosure to employees to what is necessary for business operation, and prevent unauthorized use or reproduction of the information. Both the franchisee and any guarantor acknowledge that all customer data generated or obtained is confidential information belonging to Fly To Fit. These confidentiality obligations survive the termination or expiration of the Franchise Agreement indefinitely, highlighting the importance Fly To Fit places on protecting its proprietary information.