Is performance data considered Confidential Information for a Ledgers franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, performance data is considered Confidential Information. Ledgers explicitly defines "Confidential Information" as non-public, sensitive, or proprietary material related to their Franchise System, the franchisee's relationship with Ledgers, or the Franchise Business itself, regardless of whether the information is provided by Ledgers or the franchisee. This includes client lists, performance data, and reports from the Franchise System, along with any related notes, summaries, or derivative works.
This means that as a Ledgers franchisee, you are obligated to protect performance data and not disclose it to third parties without prior written consent from Ledgers. You are allowed to share this information with your employees or agents if they need it to perform their job functions and are subject to similar confidentiality restrictions.
The FDD also specifies how Confidential Information can be used and stored. Franchisees may only use Confidential Information to fulfill their obligations under the Franchise Agreement and must avoid using it for their own benefit or to the detriment of Ledgers. The information must be stored securely, whether physically or electronically, and franchisees must comply with all regulatory and legal requirements for protecting consumer and tax preparer data. Furthermore, franchisees are required to notify Ledgers if any Confidential Information is lost or stolen, regardless of fault. This underscores the importance Ledgers places on protecting sensitive business and client information within its franchise network.