Are the System Standards considered confidential and proprietary information by Red Wagon Club?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
- (1) training and operations materials, including the Operations Manual;
- (2) the System Standards and other methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, knowledge, and experience used in developing and operating Businesses;
- (3) information regarding potential marketing, advertising and promotional programs and strategies related thereto, and analyses of the performance and results of such programs once implemented;
- (4) strategic plans, including expansion strategies and targeted demographics;
- (5) knowledge of, specifications for and suppliers of, and methods of ordering, Operating Assets and other products and supplies;
- (6) any computer software or similar technology which is proprietary to Franchisor or the System, including digital passwords and identifications and any source code of, and data, reports, and other printed materials generated by, the software or similar technology;
- (7) knowledge of the operating results and financial performance of Businesses other than Franchisee's RWC Business;
- (8) information generated by, or used or developed in, Franchisee's RWC Business' operation, including information contained from time to time in the Technology System;
- (9) lists of current, former, and prospective Members of Franchisor's, its affiliates, or any other Business, including information such as Member names, contact persons, addresses, telephone numbers, e-mail addresses, buying habits, preferences, demographic information, and related information (collectively, "Member Information");
- (10) criteria for approving or rejecting proposed suppliers of any of the System Standards; and
- (11) any other information designated as confidential or proprietary by Franchisor.
All Confidential Information will be owned by Franchisor. Franchisee acknowledges and agrees that Franchisee will not acquire any interest in Confidential Information, other than the right to use it as Franchisor specifies in operating Franchisee's RWC Business during the Term, and that Confidential Information is proprietary, includes Franchisor's trade secrets, and is disclosed to Franchisee only on the condition that Franchisee agrees, and Franchisee in fact does agree, that Franchisee, its owners, and its employees:
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, System Standards are included as part of the confidential and proprietary information. As a Red Wagon Club franchisee, you must agree to protect this information.
Red Wagon Club considers several categories of information as confidential. These include training and operations materials (like the Operations Manual), the System Standards themselves, and the methods, formats, specifications, systems, procedures, sales and marketing techniques used in the business. It also extends to marketing and advertising program information, strategic plans, supplier information, proprietary software, operating results of other Red Wagon Club businesses, and Member Information.
As a franchisee, you do not acquire any ownership interest in this confidential information, only the right to use it according to Red Wagon Club's specifications during the term of your Franchise Agreement. This information is considered proprietary and includes Red Wagon Club's trade secrets. You, your owners, and your employees are obligated to maintain its confidentiality.