Is a Pearce Bespoke franchisee prohibited from divulging confidential information after the franchise agreement is terminated?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Personal Guarantors further agree that they will never, during the initial term or any renewal term of this Agreement, or any time after this or any renewal Franchise Agreement expires or terminates, or Franchisee's rights under this Agreement or any renewal Franchise Agreement are assigned or terminated, divulge or use any of Franchisor's Confidential Information for the benefit of any third party (including any person, business entity or enterprise of any type or nature), nor will Franchisee or Personal Guarantors directly or indirectly aid such third party to imitate, duplicate or "reverse engineer" any of Franchisor's Confidential Information. "Confidential Information" means all information, knowledge, trade secrets, or know-how utilized by the Business System, or which otherwise concerns Franchisee's or Franchisor's systems of operation, programs, services, products, customers, practices, materials, books, records, manuals, computer files, databases, or software.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees are prohibited from divulging confidential information not only during the term of the agreement but also after it expires or terminates. The franchisee agrees they will never divulge or use any of Pearce Bespoke's confidential information for the benefit of any third party. They also cannot directly or indirectly aid any third party to imitate, duplicate, or "reverse engineer" any of Pearce Bespoke's confidential information. This obligation extends beyond the termination of the franchise agreement.
Confidential information includes all information, knowledge, trade secrets, or know-how utilized by the Business System, or which otherwise concerns the franchisee's or Pearce Bespoke's systems of operation, programs, services, products, customers, practices, materials, books, records, manuals, computer files, databases, or software. This definition is broad and covers virtually all aspects of the Pearce Bespoke business.
This clause is standard in franchise agreements to protect the franchisor's proprietary information and maintain a competitive advantage. Prospective Pearce Bespoke franchisees should understand that this obligation continues even after they are no longer part of the Pearce Bespoke franchise system. They should also ensure their employees with managerial duties sign a Confidentiality/Non-Competition Agreements agreeing to maintain the confidentiality, during the course of their agreement and thereafter, of all information Pearce Bespoke copyrights or designates as confidential and proprietary.