Does the definition of 'Confidential Information' for a Chatime franchise include information concerning the Franchisor's marketing procedures?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidential Information means any confidential, commercially sensitive or valuable information belonging to the Franchisor or its affiliates concerning the Franchisor or the Business System and includes, but is not limited to: (a) the provisions of the Franchise Agreement and any subject matter dealt with or contemplated therein; (b) all information concerning the Franchisor's business, the Business System, as it is now and in the future; (c) the Intellectual Property; (d) the methodology, affairs and procedures that the Franchisor specifies in the Business System that the Franchisee must use in the Franchised Business; (e) all information concerning the Franchisor's price lists, customer lists and client information, marketing and promotional 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 the 2025 Chatime Franchise Disclosure Document, Confidential Information includes data, techniques, and information related to marketing procedures. The FDD specifies that confidential information includes any sensitive or valuable information belonging to Chatime or its affiliates concerning the franchisor or the Business System. This extends to information concerning price lists, customer lists and client information, marketing and promotional procedures and activities, surveys, techniques, data, research and development, marketing plans, business plans and information.
For a prospective Chatime franchisee, this means that the details of Chatime's marketing strategies, customer data, and promotional activities are considered confidential. Franchisees are obligated to protect this information and can only use it as permitted under the Franchise Agreement. This obligation extends both during the term of the agreement and after its expiration or termination.
Chatime franchisees must maintain the absolute confidentiality of this information, prevent unauthorized copies, and implement procedures to prevent unauthorized use or disclosure. If required by Chatime, franchisees must ensure that their owner managers, directors, shareholders, agents, employees, and any interested party enter into a confidentiality agreement. This ensures that Chatime's marketing strategies and other sensitive information remain protected, maintaining a competitive advantage and consistency across the franchise system.