Does the definition of 'Confidential Information' for a Chatime franchise include accounting procedures used in the Business System?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
procedures and activities, surveys, techniques, data, research and development, Franchisor's methodology and procedures for operating a Chatime Store Business, knowhow and trade secrets, processes and formula, benchmarks for operation of a Franchised Business, customer information, lists and data, strategies, marketing plans, business plans and information; (f) any accounting procedures or financial information used in the Business System; (g) the contents of the Manual and each of the other Franchise Documents; (h) the Software and computer software programs if any (other than commercially available software packages) developed or implemented by the Franchisor for use in the Franchised Business, whether it is written, conveyed orally, stored or recorded by electronic, magnetic or other means and whether in original form or recompiled; and (i) all other information of a confidential nature.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Confidential Information includes any confidential, commercially sensitive, or valuable information belonging to Chatime or its affiliates concerning the franchisor or the Business System. This extends to various aspects of the franchise operation.
Specifically, the definition of 'Confidential Information' includes any accounting procedures or financial information used in the Business System. This means that franchisees are obligated to keep Chatime's accounting methods and financial data secret.
This obligation extends to the provisions of the Franchise Agreement, all information concerning Chatime's business and the Business System, Intellectual Property, and the methodology, affairs, and procedures that Chatime specifies for use in the Franchised Business. It also includes price lists, customer lists, client information, and marketing and promotional strategies.