What happens to obligations pertaining to confidentiality after the termination of a Fly To Fit franchise agreement?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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, the franchisee's confidentiality obligations continue indefinitely even after the franchise agreement terminates or expires.
Specifically, the franchisee must adhere to all procedures prescribed by Fly To Fit for maintaining confidentiality. They can only disclose confidential information to employees to the extent necessary for business operation and cannot use such information in any other business unless Fly To Fit provides explicit written authorization. The franchisee is expected to maintain the highest degree of diligence in protecting the confidentiality of the information. They are prohibited from copying or reproducing any confidential information and must promptly report any unauthorized disclosure or use of it.
Fly To Fit also states that all customer data and other non-public data generated by the business is considered confidential information and is exclusively owned by Fly To Fit. The franchisor licenses such data back to the franchisee without charge, but only for use in connection with the business during the term of the agreement. This underscores the importance of safeguarding confidential information, as its unauthorized use could lead to legal repercussions and damage the Fly To Fit brand.