factual

What agreement must employees of an Itan franchisee sign before accessing confidential information?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

  • "Confidentiality Agreement" means the Confidentiality Agreement that must be signed by certain of your employees pursuant to §14.5, the current form of which is attached as ATTACHMENT "G".

Source: Item 23 — RECEIPT (FDD pages 44–190)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, certain employees of an Itan franchisee must sign a Confidentiality Agreement before accessing confidential information. This agreement is referenced in Section 14.5 of the franchise agreement and is included as Attachment "G" to the agreement. The agreement is between the employee and Itan Franchising, Inc., outlining the employee's obligations to protect Itan's confidential information. The purpose of this agreement is to protect Itan's intellectual property, which Itan considers vital to the success of its franchise system.

The Confidentiality Agreement defines "Confidential Information" broadly, including Know-How, Business Data, information in the Manual or System, terms of the Franchise Agreement, and other concepts, ideas, trade secrets, financial information, and strategies. It also specifies what is not considered confidential information, such as information already publicly available or independently developed by the employee.

The agreement requires employees to refrain from using the Intellectual Property or Confidential Information in any business other than the operation of the franchisee's salon, maintain the confidentiality of Confidential Information at all times, refrain from making unauthorized copies of documents containing Confidential Information, take all steps reasonably required to prevent unauthorized use or disclosure of Confidential Information, and immediately stop using the Intellectual Property and Confidential Information when they are no longer an employee or independent contractor of the franchisee. This ensures that Itan's proprietary information remains protected, even after an employee leaves their position.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.