The NDA: Contents and Application.


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The confidentiality agreement is another aspect of franchise purchase and franchise ownership. The acquisition of a franchise comes with a lot of exclusive information. A confidentiality or non-disclosure agreement (NDA) between partners or colleagues ensures that trade secrets remain private.

The NDA ensures that trade secrets remain private between partners.

The confidentiality agreement is a contract used to communicate an agreement of secrecy between parties. While confidentiality agreements are used in many other instances, within franchise law, these contracts typically guard the company’s trade secrets. As a franchisee, or potential franchisee, there are certain pieces of company information that you wouldn’t want to land in a competitors’ hands. For this reason, a confidentiality agreement is likely the best route to take.

There are several primary elements to any NDA, according to Forbes. As with an FDD, the NDA identifies all parties and all confidential information is thoroughly and explicitly drawn out. Confidentiality agreements also typically come with a term­—kind of like an expiration date—which is articulated within the contract. Alongside the term, the scope of the confidentiality obligation is articulated. Typically, the recipient of the contract needs to take reasonable steps to ensure others do not gain access of any confidential information. Often, certain exclusions are also noted, as there can arise situations where it would be too burdensome for the recipient to keep the information private.

Primary nda elements

There are several primary elements to any NDA, according to Forbes. As with an FDD, the NDA identifies all parties and all confidential information is thoroughly and explicitly drawn out. Confidentiality agreements also typically come with a term­—kind of like an expiration date—which is articulated within the contract. Alongside the term, the scope of the confidentiality obligation is articulated. Typically, the recipient of the contract needs to take reasonable steps to ensure others do not gain access of any confidential information. Often, certain exclusions are also noted, as there can arise situations where it would be too burdensome for the recipient to keep the information private.

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