Does the non-disclosure agreement for Pearce Bespoke extend to renewal terms of the franchise agreement?
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, the non-disclosure agreement extends to any renewal terms of the franchise agreement. Franchisees and personal guarantors must not divulge or use Pearce Bespoke's confidential information during the initial term, any renewal term, or even after the agreement expires or terminates. This obligation also applies if the franchisee's rights are assigned or terminated.
This means that even after a franchisee's relationship with Pearce Bespoke ends, they are still legally bound to protect the brand's confidential information. This includes not using the information for the benefit of any third party or aiding a third party in imitating, duplicating, or reverse engineering Pearce Bespoke's confidential information.
The definition of "Confidential Information" is broad, encompassing all information, knowledge, trade secrets, or know-how utilized by the Business System, or which otherwise concerns the franchisee's or franchisor's systems of operation, programs, services, products, customers, practices, materials, books, records, manuals, computer files, databases, or software. This extensive definition ensures that a wide range of information is protected under the non-disclosure agreement, both during and after the franchise term.