What is the condition under which an Itan employee is presumed to have breached the agreement by disclosing Confidential Information to family?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You could circumvent the intent of this Agreement by disclosing Confidential Information to immediate family members (i.e., parent, sibling, child or grandchild) and it would be difficult for us to prove your breach.
For that reason you are presumed to have breached this Agreement if an immediate family member uses or discloses Confidential Information.
You may rebut this presumption with evidence conclusively showing you did not disclose Confidential Information to the family member.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, an employee is presumed to have breached the Confidentiality Agreement if an immediate family member uses or discloses Confidential Information. Immediate family members are defined as parents, siblings, children, or grandchildren. This presumption exists because it would be difficult for Itan to prove whether the employee directly disclosed the confidential information to the family member.
However, the employee has the opportunity to rebut this presumption. They can provide evidence that conclusively demonstrates they did not disclose the Confidential Information to the family member. This means the burden of proof shifts to the employee to prove their innocence in such a situation.
This clause is designed to protect Itan's confidential business information and trade secrets. It highlights the importance of maintaining confidentiality not only by the franchisee and their employees but also within their immediate family circle. Prospective franchisees should understand the implications of this clause and ensure that their family members are also aware of the importance of maintaining confidentiality to avoid any potential legal issues.