What is considered 'Confidential Information' related to the operation of a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
During the initial and any renewal terms of the Franchise Agreement and this Guaranty, you will receive information, which Franchisor considers to be Confidential Information, trade secrets and/or confidential information, including without limitation: (i) site-selection criteria; (ii) methods, techniques and trade secrets for use in connection with the proprietary business operating system that Franchisor and its affiliates have developed (the "System")forthe establishment and operation of a SPRAY-NET business(each, an "Franchised Business") and/or franchise (each, a "Franchised Business"); (iii) marketing research and promotional, marketing and advertising programs for the Franchised Business; (iv) knowledge of specification for and suppliers of, certain products, fixtures, furnishings, equipment and inventory used at the Franchised Business (v) knowledge of the operating results and financial performance of other Franchised Businesses; (vi) customer communication and retention programs, along with data used or generated in connection with those programs; (vii) Franchisor's proprietary Manuals and other instructional manuals, as well as any training materials and information Franchisor has developed for use in connection with the System; (viii) information regarding the development of Franchisor's proprietary marks (the "Proprietary Marks"); (ix) information generated by, or used or developed in, an Franchised Business's
operation, including client names, properties and contracts of any kind, addresses, telephone numbers and related information and any other information contained in the Franchised Business's computer system or proprietary software system; (x) Franchisor's proprietary Manuals and other instructional manuals, as well as any training materials and information Franchisor has developed for use in connection with the System; as well as any other proprietary information or confidential information that is provided to Franchiseeby Franchisor during the term of the Franchise Agreement (collectively, "Confidential Information"). Youshall not, during the term of this Agreement or anytime thereafter, communicate, divulge, or use for the benefit of any other person, partnership, association, corporation, or limited liability company any Confidential Information and trade secrets, including, without limitation: Franchisor's copyrighted materials; price marketing mixes related to the Approved Services and Products (as defined in the FranchiseAgreement); standards and specifications for providing the Approved Services and Products and other merchandise or services offered or authorized for sale by System franchisees; methods and other techniquesand know-how concerning the of operation of the Franchised Business, which may be communicated to youor of which you may become apprised by virtue of your role as a guarantor of the Franchisee's obligationsunder the Franchise Agreement. You also acknowledge and agree that the following also constitutes "Confidential Information" under this Section: (i) former, current and prospective client information, including customer names and addresses, contracts/agreements (collectively "Client Information"), and (ii)sources and pricing matrices of any approved or designated suppliers; and (iii) any and all information, knowledge, know-how, techniques, and other data, which Franchisor designates as confidential.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Confidential Information includes a wide array of proprietary details related to the franchise's operation. This encompasses site-selection criteria, the methods and techniques used in the Spray Net's business operating system, marketing research, and promotional programs. It also extends to knowledge of specifications for suppliers, products, fixtures, equipment, and inventory.
The definition further includes the operating results and financial performance data of other Spray Net franchises, customer communication and retention programs, and any data generated from these programs. Spray Net's proprietary manuals, instructional materials, and training information are also considered confidential, as is information regarding the development of Spray Net's proprietary marks. Client-related data, such as names, properties, contracts, addresses, and telephone numbers, stored within the franchise's computer systems or proprietary software, is also protected.
In addition to the above, any other proprietary or confidential information provided by Spray Net to the franchisee during the term of the Franchise Agreement is classified as Confidential Information. This includes copyrighted materials, pricing strategies, standards and specifications for approved services and products, and operational methods and techniques. The franchisee is prohibited from disclosing or using any of this information for the benefit of any other party during or after the franchise term.