To whom can a My Salon Suite franchisee divulge Confidential Information?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
Covenantor shall maintain all Confidential Information. Covenantor shall not at any time make copies of any documents or compilations containing any Confidential Information for any purpose without the express written permission of Franchisee and SMF. Covenantor shall not disclose or permit the disclosure of any Confidential Information to any party except other employees or persons associated with Franchisee and only to the extent necessary to train or assist other employees of Franchisee in the operation of the Franchised Business. This covenant shall always continue in full force and effect during and after the Covenantor's employment with Franchisee.
Franchisee may divulge such Confidential Information only to such of Franchisee's employees as must have access to it to operate the Franchised Business.
Franchisee must require all of Franchisee's officers, directors, managers, and other employees to execute covenants that they will maintain the confidentiality of information they receive in connection with their employment by Franchisee at the Franchised Business premises. Such covenants shall be in a form satisfactory to Franchisor and substantially similar to the Confidentiality and Non- Competition Agreement attached as Attachment H. These agreements must include, without limitation, specific identification of Franchisor as a third-party beneficiary of such covenants with independent rights to enforce them.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, a franchisee can disclose Confidential Information only to specific individuals under certain conditions. Franchisees may divulge Confidential Information to their employees or individuals associated with the franchisee, but only to the extent necessary for training or assisting those employees in the operation of the Franchised Business.
My Salon Suite requires franchisees to ensure that all officers, directors, managers, and other employees sign agreements to maintain the confidentiality of information they receive during their employment. These agreements must be satisfactory to My Salon Suite and similar to the Confidentiality and Non-Competition Agreement provided in the FDD. The franchisor is specifically identified as a third-party beneficiary with independent rights to enforce these confidentiality agreements.
It's important to note that these confidentiality obligations extend beyond the termination or expiration of the Franchise Agreement. Franchisees and their employees must continue to protect the Confidential Information, and upon termination, all copies of such information must be returned to My Salon Suite. This ensures the continued protection of My Salon Suite's trade secrets and proprietary information.