As a Carls franchisee, what actions are explicitly prohibited regarding the Confidential Information according to the franchise agreement?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall protect the Confidential Information as trade secrets of CKR, PAR Brink and CrunchTime. Franchisee agrees that it shall not, without the written permission of CKR, PAR Brink and CrunchTime: (a) modify any Confidential Information; (b) reverse engineer, decompile, decrypt or disassemble the Confidential Information or attempt to do so; (c) transfer, rent, lease, lend or sublicense any Confidential Information to anyone for any purpose; or (d) reveal or disclose any Confidential Information for any purpose to any other person, firm, corporation or other entity, other than Franchisee's employees with a need to know that Confidential Information, to perform employment responsibilities consistent with Franchisee's rights under this Agreement. Franchisee shall safeguard and protect the Confidential Information from theft, piracy or unauthorized access in a manner at least consistent with the protections Franchisee uses to protect its own most confidential information. Franchisee shall inform its employees of their obligations under this Agreement and shall take those steps as may be reasonable in the circumstances, or as may be reasonably requested by CKR, PAR Brink and CrunchTime, to prevent any unauthorized disclosure, copying or use of the Confidential Information.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 Carls Franchise Disclosure Document, franchisees have explicit restrictions regarding confidential information. The franchise agreement specifies that without written permission from CKR, PAR Brink, and CrunchTime, a franchisee is prohibited from modifying, reverse engineering, decompiling, decrypting, or disassembling any confidential information.
Furthermore, franchisees cannot transfer, rent, lease, lend, or sublicense any confidential information to anyone for any purpose. They are also barred from revealing or disclosing any confidential information for any purpose to any entity, except to their own employees who need the information to perform their job responsibilities in line with the franchise agreement.
Carls franchisees must protect confidential information from theft, piracy, or unauthorized access, using security measures that are at least as strong as those they use to protect their own most confidential information. Franchisees are also required to inform their employees about their confidentiality obligations and take reasonable steps to prevent any unauthorized disclosure, copying, or use of the confidential information.