Does the Chatime definition of 'Confidential Information' include plans and specifications for the development of the Outlet?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(13) Confidential Information means:
(a) Plans and specifications for the development of the Outlet;
(14) Recipes, training materials, programs and systems, methods, techniques, formats, specifications, standards, procedures, sales and marketing techniques, computer software programs, statistical data, and knowledge of and experience relating to the development and operation of the Outlet;
(a) Marketing and advertising programs;
(b) Knowledge of specifications for and suppliers of Raw Materials and certain other Products, materials, supplies, equipment, fixtures, furnishings, and services and knowledge of operating results and financial performance of the Outlet;
(c) The Operations Manual (as applicable from time to time), Operations Manual Addendum, and all other materials;
(d) Global Policies and Procedures;
(e) Information concerning the business and financial affairs of Franchisor and their Affiliates including, without limitation, the identity of prospective franchisees and Franchisees;
(f) The System Standards;
(g) Any information which is provided by Franchisor or any of its Affiliates and marked "confidential" or any information which is provided by Franchisor or any of its Affiliates pursuant to this Agreement or which Franchisee learns or gains access to by reason of this Agreement; and
(h) Any information that would at law be considered secret or confidential information of Franchisor or any Affiliate of Franchisor.
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 plans and specifications for the development of the Outlet. This means that as a franchisee, you are obligated to protect the secrecy of these documents.
The FDD specifies that Confidential Information includes "Plans and specifications for the development of the Outlet." This extends to recipes, training materials, programs, systems, methods, techniques, formats, specifications, standards, procedures, sales and marketing techniques, computer software programs, statistical data, and knowledge related to the Outlet's development and operation.
Chatime also considers marketing and advertising programs, knowledge of supplier specifications for raw materials, operating results, financial performance, operations manuals, global policies, franchisee information, system standards, and any marked confidential information as Confidential Information. Any information that would legally be considered a trade secret of Chatime is also included. This broad definition underscores the importance Chatime places on protecting its proprietary information and systems.