Proprietary And Confidential Information and Franchise Disclosure Documents
Legal Article GuideBy: Lance Winslow
A franchisor must be concerned with their proprietary and confidential methods of doing business in business secrets. The confidential operations manual must be guarded and kept away from competitors in the marketplace, who will he immediately use such knowledge to hurt up to franchise system and team. It is for this reason that you should pay special attention in the franchise agreement with regards to proprietary and confidential information. In my franchisee company by chose to insert a special clause, which I had designed personally, you'll find a below;
3.19 Proprietary And Confidential Information
The System includes valuable confidential information. Franchisee agrees to not communicate or divulge the contents of our Confidential Operations Manuals, our Confidential Marketing Manuals, our Franchisee Forum intranet system or any other information related to the System or to the operation of the Franchise or The Car Wash Guys or the WASH GUY.COM franchise system to any person or entity except those Franchisor authorizes in writing to receive the information. Franchisee agrees that those contents and information are confidential. They are Franchisor’s exclusive property, and Franchisee may only use them in the Franchise subject to the provisions and duration of this Franchise Agreement. Franchisee agrees to fully and strictly adhere to all security procedures Franchisor prescribes for maintaining the secrecy of the information. Franchisee agrees to disclose information to their employees only to the extent necessary to perform the franchise business.
Franchisee will assure that Franchisee and all their agents, employees, consultants, partners, owners, officers, directors, and shareholders and other persons in their control, to whom any information is communicated, keep, preserve, and protect all confidential information.
Franchisee acknowledges that during the term of this Franchise Agreement, Franchisee will have access to, become acquainted with and have disclosed to Franchisee by Franchisor confidential information, programs, devices, methods, techniques and processes that are not generally known to the public pertaining to the promotion, marketing, operation and management of a business that offers the cleaning, washing and waxing of automobiles and fleet vehicle washing including the information contained in the Confidential Operations Manual and on the Franchisee Forum intranet system.
Franchisee will not, during the term of this Franchise Agreement or thereafter, communicate, fax, e-mail, post on an internet electronic bulletin board, divulge or use for the benefit or any other person, persons, partnerships, associations, companies or corporations any confidential or proprietary information, knowledge or know-how concerning our methods of operation of the franchised business Franchisor has licensed to Franchisee or any information Franchisor has communicated to Franchisee in written, verbal or electronic form, including intranet passwords, for the operation of the Franchised Business.
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Obviously this is not something you should take lightly and you must contact a knowledgeable inexperienced franchise attorney to make sure your company and your franchisee firm is protected. I hope you will consider this in 2006.
Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/
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