Does the Ledgers definition of Confidential Information include information obtained electronically?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
stions, enhancement requests, recommendations, or other feedback provided by you or anyone else. We will have sole and exclusive rights and title to such suggestions.
5.4. Performance Data
Performance data is Confidential Information. We reserve the right to share performance data of your Franchise Business with individuals and agents who need it to provide us with assistance or to comply regulatory requirements.
Confidentiality
6.1. Definition
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.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–37)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, the definition of Confidential Information includes information obtained electronically. The FDD specifies that confidential information can be in any form, including electronic media. This means that any proprietary material related to the Ledgers franchise system, the relationship between the franchisee and franchisor, or the franchise business is considered confidential, regardless of whether it is in tangible, intangible, or electronic form. This broad definition ensures that all sensitive information is protected, regardless of how it is stored or transmitted.
Ledgers franchisees must store Confidential Information in a secure location, whether physically or electronically, and must follow all regulatory and legal requirements for the protection of consumer data and tax preparer data. This obligation extends to safeguarding client lists, performance data, and any derivative works. Franchisees are also required to notify Ledgers if any Confidential Information is lost or stolen, irrespective of fault.
The inclusion of electronic media in the definition of Confidential Information is a standard practice in franchising today, given the prevalence of digital communication and data storage. This requirement ensures that franchisees understand their responsibilities in protecting sensitive data in all its forms, which is particularly important in the context of business advisory, bookkeeping, payroll, and income tax preparation services offered by Ledgers. Franchisees should ensure they have adequate security measures in place to protect electronic Confidential Information and train their employees accordingly.