Under what circumstances can a Red Wagon Club licensee disclose Confidential Information?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Obligations of Confidentiality. Licensee must keep the Confidential Information confidential at all times before, during and after the Term, subject to the terms hereof. Licensee must use the Confidential Information for no purpose other than to execute this Agreement, exercise Licensee's rights or perform its obligations under this Agreement, unless otherwise required under
the order of a competent judicial authority. Licensee may disclose Confidential Information only to Licensee's officers or employees who have a need to know such Confidential Information to perform the duties contemplated by this Agreement. If any person to whom Confidential Information was disclosed pursuant to the preceding paragraph breaches his or her obligation of confidentiality, Licensee shall be jointly and severally liable for damages arising from such breach.
(c) Return or Destruction. Upon the expiration or earlier termination of this Agreement, Licensee must promptly return all Confidential Information related to Franchisor to Franchisee or certify in writing that such Confidential Information has been destroyed. Notwithstanding the foregoing (i) Licensee may maintain copies of Confidential Information as may be required under the applicable law, and (ii) as necessary to enforce Licensee's rights under this Agreement. For any Confidential Information lawfully retained by Licensee, the terms and conditions in this Agreement applicable to the use of such Confidential Information will continue to apply to such Confidential Information from and after the expiration or termination of this Agreement for so long as Licensee has access to such Confidential Information.
Source: Item 23 — RECEIPTS (FDD pages 47–142)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, a licensee has specific allowances for disclosing Confidential Information. The licensee can disclose Confidential Information to their officers or employees who need to know the information to perform their duties under the License Agreement. However, the licensee is liable for damages if any person to whom Confidential Information was disclosed breaches their obligation of confidentiality.
Additionally, a licensee may disclose Confidential Information if required by a competent judicial authority. This means if a court orders the licensee to reveal Confidential Information, they are permitted to do so.
Upon the expiration or termination of the License Agreement, the licensee must return or destroy all Confidential Information. However, the licensee can maintain copies of Confidential Information as required by applicable law or as necessary to enforce their rights under the License Agreement. Any Confidential Information lawfully retained remains subject to the confidentiality terms of the agreement even after termination.