Does the Carls Jr. agreement place any time limit on the obligations of non-use and non-disclosure of Confidential Information?

According to the 2025 Carls Jr. Franchise Disclosure Document, the obligations of non-use and non-disclosure with respect to particular items of Confidential Information will remain in effect indefinitely. This means that the franchisee's duty to protect and not use the confidential information provided by Carls Jr. continues without any time limit.

This indefinite obligation has significant implications for a prospective Carls Jr. franchisee. Even after the franchise agreement expires or is terminated, the franchisee is still legally bound to protect the confidentiality of the information they received during the term of the agreement. This includes trade secrets, business methods, and other proprietary information related to the Carls Jr. system.

The franchisee must ensure that they, their employees, and any third parties they share the information with also maintain this confidentiality indefinitely. Failure to do so could result in legal action from Carls Jr., as the franchisor has a vested interest in protecting its confidential information to maintain its competitive advantage. This is a stricter-than-average confidentiality clause, as many franchise agreements limit the non-disclosure period to a set number of years post-termination.