What are the specific obligations of an applicant to Carls Jr. when disclosing Confidential Information to their employees or third parties?

According to the 2025 Carls Jr. Franchise Disclosure Document, if an applicant wishes to disclose Confidential Information to their partners, employees, advisors, or other representatives, they must ensure that certain conditions are met. First, the individual must have a reasonable need to know the Confidential Information in connection with evaluating the franchise opportunity. Second, the individual must be advised of the confidential nature of the information and agree to maintain its confidentiality.

Carls Jr. may also request that the employee or third party sign an agreement, in a form satisfactory to Carls Jr., which legally binds them to comply with all provisions of the confidentiality agreement. This ensures that all parties who have access to Carls Jr.'s Confidential Information are aware of their obligations and are legally bound to protect that information.

These obligations of non-use and non-disclosure remain in effect indefinitely, meaning that even after the initial evaluation period, the applicant and their representatives must continue to protect the Confidential Information. If the applicant does not enter into a Development or Franchise Agreement with Carls Jr., they must return all copies of the Operations and Policy Manual (OPM) and certify that all parties to whom they disclosed the information have complied with these requirements.