What procedures must a Fly To Fit franchisee adhere to for maintaining the confidentiality of Confidential Information?
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, franchisees must adhere to specific procedures to maintain the confidentiality of sensitive information. These procedures include following all guidelines prescribed by Fly To Fit for maintaining confidentiality. Franchisees are only allowed to disclose confidential information to their employees when it is essential for business operations.
Additionally, franchisees are prohibited from using confidential information in any business other than Fly To Fit or in any way not explicitly authorized in writing by Fly To Fit. Franchisees must also exercise the highest degree of diligence to protect the confidentiality of all such information both during and after the franchise agreement term. This obligation extends indefinitely, even after the agreement expires or is terminated.
Furthermore, franchisees are not allowed to copy or reproduce any confidential information. They are also required to promptly report any unauthorized disclosure or use of confidential information. The FDD specifies that all confidential information is owned by Fly To Fit, except for information that Fly To Fit licenses from another party. These measures are designed to protect Fly To Fit's proprietary information and maintain a competitive advantage.