Is a Learningrx franchisee allowed to use confidential information in any other business?

y signage and décor bearing the Marks and identifying the Premises as a Center, and signage indicating that the Business is independently owned and operated as a franchised Business. Franchisor has the right to approve all signage and décor at the Center. All signage and décor must remain current with the System's standards as Franchisor may modify periodically.

7. OPERATIONS MANUAL AND CONFIDENTIAL INFORMATION

• 7.1 Confidential Information. The System, the Operations Manual, and other Confidential Information are proprietary, involve trade secrets of Franchisor, and are disclosed to Franchisee solely on the express condition that Franchisee agrees, and Franchisee does hereby agree to:
• (a) fully and strictly adhere to all security procedures prescribed by Franchisor, in its sole discretion, for maintaining the proprietary information as confidential;
• (b) disclose such information to its employees only to the extent necessary to market products and services and for the operation of the Business in accordance with this Agreement;
• (c) not use any such information in any other business or in any manner not specifically authorized or approved in writing by Franchisor; and
• (d) exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all such information during and after the term of this Agreement, and follow Franchisor's security procedures, which include the execution of approved nondisclosure agreements, and intranet, extranet and Internet usage agreements when developed by Franchisor, by Franchisee and any employee or agent who is allowed access.
• 7.2 Standards and Authorized Use. Franchisee must maintain strict compliance with the minimal standards set forth in the Operations Manual and as subsequently amended and revised in Franchisor's sole discretion, including completing a background check for each of its employees, as more fully set forth in the Operations Manual. Franchisee's failure to satisfy Franchisor's minimal standards at any time shall entitle Franchisor to require Franchisee and Franchisee's employees to attend and complete, at Franchisee's sole cost and expense, such additional training as Franchisor deems necessary, in Franchisor's sole discretion, in order to enable Franchisee to once again satisfy Franchisor's minimal

standards. Franchisee's failure or refusal to attend and complete such additional training and/or required conferences shall be deemed a default of this Agreement and shall entitle Franchisor to exercise one or more of the remedies set forth in Section 13 of this Agreement, including imposing fines or other penalties as more fully set forth in the Operations Manual.

• 7.3 Unauthorized Use.

Source: Item 23 — RECEIPT (FDD pages 54–209)