What specific actions are Carls Jr. franchisees prohibited from taking regarding Confidential Information without written permission from CKR, PAR Brink and CrunchTime?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
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 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees are restricted from certain actions regarding confidential information related to CKR, PAR Brink, and CrunchTime. Specifically, without prior written consent, franchisees are prohibited from modifying any confidential information, reverse engineering, decompiling, decrypting, or disassembling it, or attempting to do so.
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 other person, firm, corporation, or other entity, except to their own employees who have a need to know the information to perform their job responsibilities, and even then, only consistent with the franchisee's rights under the Franchise Agreement.
These restrictions are in place to protect the trade secrets of Carls Jr. and its software vendors. Franchisees must also 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. Franchisees must also inform their employees of their confidentiality obligations and take reasonable steps to prevent unauthorized disclosure, copying, or use of the confidential information. If a franchisee discovers any prohibited use or disclosure of confidential information, they must immediately notify CKR and cooperate to regain possession of the information and prevent further unauthorized use.