Does the definition of 'Confidential Information' for Ledgers include trade secrets?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
"Confidential Information" means our information or data (oral, written, electronic or otherwise), including, without limitation, a trade secret, that is valuable and not generally known or readily available to third parties obtained by you from us during the term of the Franchise Agreement. The Confidential Information of ours includes all intellectual property associated with our Franchise System, all other materials relating to our Franchise System that are not a matter of public record, and all information generated during the performance of the Franchise Agreement.
"Customer Data" is considered Confidential Information, and includes all information about customers that may be collected in connection with their use of your services including, but not limited to, name, telephone number, address and email address.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–37)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the definition of "Confidential Information" does include trade secrets. The FDD specifies that confidential information means Ledgers' information or data, whether oral, written, or electronic, including, without limitation, a trade secret. This information must be valuable and not generally known or readily available to third parties, and it must be obtained by the franchisee from Ledgers during the term of the Franchise Agreement.
This definition extends to all intellectual property associated with the Ledgers Franchise System, materials not of public record, and information generated during the Franchise Agreement's performance. Customer data is also considered confidential information, including customer names, telephone numbers, addresses, and email addresses.
For a prospective Ledgers franchisee, this means they are obligated to protect a wide array of information, including trade secrets, customer data, and operational details. This obligation exists during the term of the agreement. The franchisee must limit dissemination of confidential information to only those with a need to know and who have been informed of its proprietary nature.
Upon termination of the Franchise Agreement, the franchisee must return all confidential information to Ledgers and is prohibited from revealing or using it for the benefit of any other person or business. This underscores the importance of understanding and adhering to the confidentiality obligations outlined in the Franchise Agreement to avoid potential legal repercussions.