Is there an exception to the confidentiality duties outlined in the Ledgers Franchise Agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
n of our Confidential Information on a need-to-know basis and only to those individuals that have been informed of the proprietary and confidential nature of such Confidential Information. We may share performance data of your Franchised Business between us, our employees and affiliates, our franchisees and their employees. You agree to keep such performance data confidential.
"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.
Upon termination of your Franchise Agreement, you must return to us our Operations Manuals and any Confidential Information.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–37)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, there are exceptions to the confidentiality duties outlined in the franchise agreement. Specifically, Ledgers may share performance data of a franchisee's business with its employees, affiliates, other franchisees, and their employees. This allows Ledgers to monitor and improve the overall franchise system by sharing relevant data among its network.
Additionally, Ledgers reserves the right to share performance data of a franchisee's business with individuals and agents who need it to provide assistance to Ledgers or to comply with regulatory requirements. This enables Ledgers to receive necessary support and adhere to legal obligations by disclosing confidential information to relevant parties when required.
The Ledgers FDD defines "Confidential Information" as non-public, sensitive, or proprietary material related to the franchise system. This includes intellectual property, materials not of public record, and information generated during the performance of the Franchise Agreement. Customer data, including names, telephone numbers, addresses, and email addresses, is also considered Confidential Information. Franchisees are permitted to use Ledgers' Confidential Information to fulfill their obligations under the Franchise Agreement, but only on a need-to-know basis and with individuals informed of its confidential nature.
These exceptions are important for prospective franchisees to understand, as they outline the circumstances under which Ledgers can share sensitive business and customer data. While franchisees are generally required to maintain confidentiality, these provisions allow Ledgers to operate and improve the franchise system while complying with legal and regulatory demands.