What is a Carls Jr. franchisee required to do if they discover any prohibited use or disclosure of Confidential Information?

According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee has specific obligations upon discovering any prohibited use or disclosure of confidential information. The franchisee must immediately notify CKR (Carls Jr. Restaurants LLC) upon discovering any prohibited use or disclosure of the Confidential Information, or any other breach of these confidentiality obligations.

Furthermore, the franchisee is required to fully cooperate with CKR to help regain possession of the Confidential Information. This cooperation extends to preventing any further prohibited use or disclosure of the confidential information. This means the franchisee must take an active role in assisting Carls Jr. in securing the information and stopping any ongoing or potential future breaches.

This obligation highlights the importance Carls Jr. places on protecting its confidential information, which includes trade secrets, business methods, and other proprietary data. Franchisees must be vigilant in safeguarding this information and responsive in the event of a breach to mitigate potential damage to the Carls Jr. system. This is a standard practice in franchising, as the franchisor's confidential information is crucial to maintaining a competitive advantage and the integrity of the brand.