What does the Ledgers Franchise Agreement require regarding confidential information?
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. 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.
6.2. Confidentiality
You will not directly or indirectly disclose, publish, share with any third party any Confidential Information without our prior written consent. You may share Confidential Information with your employees or agents that need it to complete essential job functions if they are covered by equivalent restrictions.
6.3. Use
You may only use Confidential Information to perform your obligations under this Agreement. You will avoid using Confidential Information for your own benefit or to our detriment. For the avoidance of doubt, Confidential Information cannot be used in a competing business that is detrimental to us.
6.4. Storage
You will store Confidential Information in a secure location whether physically or electronically. You must follow all regulatory and legal requirements for the protection of consumer data and tax preparer data. You must notify us if the Confidential Information is lost or stolen, regardless of fault.
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, franchisees are bound by strict confidentiality obligations regarding the Ledgers Franchise System. "Confidential Information" includes any non-public, sensitive, or proprietary material related to the Franchise System, the relationship between the franchisee and Ledgers, or the Franchise Business itself, regardless of whether it's provided by Ledgers or the franchisee. This information can be oral or written, in any form, including tangible, intangible, and electronic media, and it doesn't need to be marked as confidential to be considered as such. Client lists, performance data, and reports from the Franchise System, along with any notes or summaries, are explicitly included as Confidential Information.
The Ledgers franchisee is prohibited from directly or indirectly disclosing, publishing, or sharing any Confidential Information with third parties without prior written consent from Ledgers. The franchisee can only share Confidential Information with employees or agents who need it to perform essential job functions, provided those individuals are also bound by equivalent confidentiality restrictions. Franchisees are only allowed to 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. Specifically, Confidential Information cannot be used in a competing business.
Ledgers franchisees must store Confidential Information securely, whether it's in physical or electronic form, and comply with all regulatory and legal requirements for protecting consumer and tax preparer data. Franchisees are obligated to notify Ledgers immediately if any Confidential Information is lost or stolen, regardless of who is at fault. Upon termination or expiration of the Franchise Agreement, the franchisee must destroy any Confidential Information in printed or digital form within ten days and provide Ledgers with written certification of its destruction. However, the franchisee may retain Confidential Information solely for legal, tax, and insurance purposes, but this information remains subject to the confidentiality restrictions outlined in the Agreement.