Is customer information considered 'Confidential Information' for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement (this "Agreement") is entered into by the undersigned ("you") in favor of iTAN Franchising, Inc., a California corporation and its successors and assigns ("us").
- **1.
DEFINITIONS**.
Capitalized terms that are not defined above have the meanings given to them below:
"Business Data" means all data pertaining to Franchisee's Salon, customers and business operations, whether collected by you, Franchisee, us or any other person.
"Confidential Information" means and includes: (a) Know-How; (b) Business Data; (c) information in the Manual or comprising the System; (d) terms of the Franchise Agreement (and related agreements) signed by Franchisee in connection with the Salon; and (e) all other concepts, ideas, trade secrets, financial information, marketing strategies, expansion strategies, studies, supplier information, customer information, franchisee information, investor information, flow charts, inventions, mask works, improvements, discoveries, standards, specifications, formulae, recipes, designs, sketches, drawings, policies, processes, procedures, methodologies and techniques, together with analyses, compilations, studies or other documents that are: (i) designated as confidential; (ii) known by you to be considered confidential by us; and/or (iii) reasonably to be considered confidential due to their nature.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, customer information is considered 'Confidential Information.' The Confidentiality Agreement defines 'Confidential Information' to include several categories of data and information related to the Itan franchise. Specifically, 'Business Data' is included in the definition of 'Confidential Information.' 'Business Data' is defined as all data pertaining to the Franchisee's Salon, customers, and business operations.
This means that as an Itan franchisee, you are obligated to protect customer information, as it falls under the umbrella of 'Confidential Information.' This obligation extends to preventing unauthorized use or disclosure of this information. The FDD also specifies that employees or independent contractors of the franchisee may also be required to sign a Confidentiality Agreement, further emphasizing the importance of safeguarding this data.
However, the FDD also outlines exceptions to what is considered 'Confidential Information.' Information that is publicly available, rightfully in the franchisee's possession before disclosure, independently developed, or rightfully obtained from a third party without a breach of confidentiality is not considered confidential. Therefore, an Itan franchisee's responsibility to protect customer information applies specifically to data that is not already in the public domain or obtained through legitimate means outside of the franchise agreement.