For how long after the termination of employment or affiliation with a Southern Steer franchisee is an associate prohibited from disclosing Confidential Information?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) During the term of Associate's employment or affiliation with Franchisee and for a period of five years after the expiration or termination of such employment or affiliation (unless such information is a Trade Secret in which case the requirements will remain in place for as long as such information constitutes a trade secret), Associate will not at any time, reveal, communicate, sell, use, employ, copy, reverse engineer, imitate, lecture upon, rewrite, reproduce, disseminate, publish, disclose, or divulge, directly or indirectly, for its own benefit or otherwise, the Confidential Information or Trade Secrets, for Associate's own benefit or otherwise.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, an associate is restricted from disclosing confidential information during their employment or affiliation with a franchisee and for a period of five years after the termination or expiration of such employment or affiliation. However, if the information qualifies as a trade secret, the non-disclosure requirement remains in effect for as long as the information retains its trade secret status. This restriction includes revealing, communicating, selling, using, copying, or divulging confidential information or trade secrets, either directly or indirectly, for their own benefit or otherwise.
This clause protects Southern Steer's proprietary information, ensuring that former associates do not use their knowledge to harm the franchise. The extended protection for trade secrets acknowledges that some information retains its value indefinitely and requires ongoing protection. This is a fairly standard practice in franchising, as franchisors need to protect their systems and methods from being copied by competitors.
For a prospective franchisee, this means that any employees or affiliates they hire will be bound by these confidentiality terms. Franchisees must ensure their associates understand and agree to these restrictions to avoid potential legal issues. It is important to note the distinction between confidential information, which has a five-year restriction, and trade secrets, which are protected indefinitely. Franchisees should consult with legal counsel to fully understand their obligations and ensure their associates are properly informed.