What is a Mrcool franchisee prohibited from doing with Confidential Information at all times?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
6.C. RESTRICTIVE COVENANTS: CONFIDENTIAL INFORMATION
Franchisee agrees that, at all times, both during the Term of this Agreement and, after its expiration or termination, Franchisee: (a) shall not use the Confidential Information in any business or capacity other than the MRCOOL Center operated by Franchisee; (b) shall maintain the confidentiality of the Confidential Information at all times; (c) shall not make unauthorized copies of documents containing any Confidential Information; (d) shall take such reasonable steps as Franchisor may ask of Franchisee from time to time to prevent unauthorized use or disclosure of the Confidential Information; and (e) shall stop using the Confidential Information immediately upon the expiration, termination or Transfer of this Agreement. Franchisee agrees that the foregoing covenants and obligations shall also apply to: (a) Franchisee's Owners and Spouses and that Franchisee's Owners and Spouses shall each execute and deliver to Franchisor the
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, franchisees are restricted from certain activities regarding Confidential Information both during the term of the agreement and after its expiration or termination. Specifically, a franchisee cannot use the Confidential Information in any business or capacity other than the Mrcool Center they operate. They must also maintain the confidentiality of the Confidential Information at all times.
Additionally, Mrcool franchisees are prohibited from making unauthorized copies of documents containing Confidential Information. They are required to take reasonable steps, as directed by Mrcool, to prevent unauthorized use or disclosure of the Confidential Information. Upon expiration, termination, or transfer of the agreement, the franchisee must immediately stop using the Confidential Information.
These obligations extend not only to the franchisee but also to their owners, spouses, directors, officers, employees, and agents, ensuring a comprehensive approach to protecting Mrcool's Confidential Information. This is a standard practice in franchising to protect the franchisor's proprietary information and maintain a competitive advantage.