Under the Chatime franchise agreement, does the definition of 'Confidential Information' include recipes, training materials, programs and systems?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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;
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 recipes, training materials, programs, and systems. This means that as a franchisee, you are obligated to protect the secrecy of these items.
Chatime considers these items as key components to their business operations. The franchise agreement specifically defines confidential information to include 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 Outlets.
As a Chatime franchisee, you are legally bound to maintain the confidentiality of these items. This obligation extends not only to preventing unauthorized disclosure to outside parties but also to ensuring that your employees and staff are aware of and adhere to these confidentiality requirements. Failure to comply with these confidentiality obligations could result in legal action from Chatime, including potential termination of the franchise agreement and financial penalties.