On what page of the Chatime FDD does it discuss confidential information?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
(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)
The 2025 Chatime Franchise Disclosure Document (FDD) refers to confidential information in several places. Item 23 includes definitions of terms used in the agreement, including a detailed definition of "Confidential Information." This definition covers various aspects of Chatime's business operations, including plans for outlet development, recipes, training materials, marketing programs, supplier information, operating results, the Operations Manual, and any data marked as confidential. It also includes information that would legally be considered a trade secret. This definition appears within Item 23, which is titled 'Receipts'.
Furthermore, the term "Confidential Information" is also referenced in the context of required confidentiality and non-competition agreements for directors, managers, and key employees of the developer, as well as other interested parties. These agreements are meant to protect Chatime's sensitive business information by preventing unauthorized disclosure or use. The FDD specifies that these agreements must contain reasonable restraints similar to those imposed on the developer and guarantor, along with confidentiality obligations.
In practical terms, this means a Chatime franchisee must understand and protect a wide array of information related to the Chatime business. This includes not only the obvious things like recipes and training materials, but also potentially less obvious things like marketing plans, financial data, and even knowledge of suppliers. The franchisee is responsible for ensuring that their employees and other involved parties also maintain this confidentiality through formal agreements. Failure to protect this information could have legal and financial repercussions for the franchisee.