What is considered 'Confidential Information' under the Ledgers franchise agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Confidential Information" is defined as non-public sensitive or proprietary material related to our Franchise System, relationship with you or the Franchise Business whether provided
by us or by you. The disclosure may be oral or written in any form including tangible, intangible and electronic media regardless whether it is marked. For the avoidance of doubt, Confidential Information includes Client lists, performance data and reports from our Franchise System along with any notes, summaries or other derivative works. Confidential Information does not include material that: a) you possessed more than thirty (30) days before the Effective Date of any contract between us, b) independently developed, c) obtained from a third party with no corresponding obligation of confidentiality, or d) in the public domain.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Confidential Information is defined as sensitive, non-public, or proprietary material related to the Ledgers Franchise System, the franchisee's relationship with Ledgers, or the Franchise Business itself. This information can be shared orally or in writing, regardless of whether it's marked as confidential, and includes tangible, intangible, and electronic media. Client lists, performance data, and reports from the Franchise System, along with any notes, summaries, or derivative works, are explicitly included as Confidential Information.
However, the definition of Confidential Information does not include material that the franchisee possessed more than thirty (30) days before the effective date of any contract with Ledgers, material that the franchisee independently developed, information obtained from a third party without any confidentiality obligation, or information already in the public domain.
The franchise agreement stipulates that franchisees cannot directly or indirectly disclose, publish, or share any Confidential Information with third parties without Ledgers' prior written consent. Franchisees are permitted to share Confidential Information with their employees or agents if those individuals need the information to perform essential job functions and are subject to similar confidentiality restrictions. Franchisees can only use Confidential Information to fulfill their obligations under the Franchise Agreement and must not use it for their own benefit or in a way that harms Ledgers, including using it in a competing business.