Under what circumstances is The Standardx franchisee allowed to disclose the Disclosing Party's Confidential Information to a competitor?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything in this Agreement, the Receiving Party shall not copy, reproduce, sell, assign, license, market, transfer or otherwise dispose of, give or disclose the Disclosing Party's Confidential Information to a competitor of the Disclosing Party without the prior written consent of the Disclosing Party.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from disclosing the Disclosing Party's Confidential Information to a competitor. However, there is an exception to this rule.
The FDD states that notwithstanding anything in the agreement, the Receiving Party (which would be the franchisee) shall not copy, reproduce, sell, assign, license, market, transfer or otherwise dispose of, give or disclose the Disclosing Party's Confidential Information to a competitor of the Disclosing Party without the prior written consent of the Disclosing Party.
In practical terms, this means that a The Standardx franchisee can only disclose confidential information to a competitor if they have obtained explicit written permission from The Standardx (the Disclosing Party) beforehand. Without this written consent, any disclosure to a competitor would be a breach of the franchise agreement.