Does the definition of 'Confidential Information' for a Chatime franchise include trade secrets?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisees from time to time.
Chatime Store Business means a business operated, including by a franchisee of the Franchisor, using the Business System, Corporate Image, Marks and other Intellectual Property (or any of them).
Chatime Group means the Franchisor and each of its parents, subsidiaries, and affiliates and each of their respective directors, officers, employees, agents and contractors.
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.
Corporate Image includes: (a) the Names, the Marks, all characters, mascots, logos, product and service ranges, trade dress, signs, advertising and other promotional material; (b) any common uniform to be used by the franchisees from time to time; (c) the type, quality, dimension, design, layout, placement and colours of and all materials, signs, equipment, and build-out, used for decorating or identifying the Premises or marketing the Franchised Business, including without limitation the corporate colours and décor; and (d) the manner of conducting dealings with customers and other members of the public including the manner, method and techniques used when the Franchisor or the Franchisee conduct the Services in the operation of the Business System and the Franchised Business and specified by the Franchisor from time to time.
Franchisees mean, collectively, the individuals or entities that have been granted a right to operate a Chatime Store Business franchise by the Chatime Group anywhere in the world.
Franchise Documents means: (a) the Franchise Agreement;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the definition of 'Confidential Information' does include trade secrets. The FDD specifies that 'Confidential Information' encompasses any confidential, commercially sensitive, or valuable information belonging to Chatime or its affiliates concerning the franchisor or the Business System.
Specifically, the definition includes the methodology, affairs, and procedures that Chatime specifies in the Business System, which the franchisee must use in the Franchised Business. It also covers all information concerning Chatime's price lists, customer lists and client information, marketing and promotional procedures and activities, surveys, techniques, data, research and development, know-how, processes and formulas.
Furthermore, the definition extends to Intellectual Property, which itself includes trade secrets, technical data, formulas, computer programs, and databases associated with the Franchised Business. This broad definition underscores the importance Chatime places on protecting its proprietary information and systems, which are crucial for maintaining brand consistency and competitive advantage.