Does the Checkers agreement address the disclosure of operating results of other franchisees' restaurants?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
I agree that during the term of my employment by, ownership participation in, association with or service to Franchisee, or at any time thereafter, I will not communicate, divulge or use for the benefit of any other person, persons, partnership, proprietorship, association, corporation or entity, Franchisor's proprietary and confidential information relating to the development and operation of Restaurants, including but not limited to: (1) ingredients, recipes, and methods of preparation and presentation of food products Franchisor authorizes; (2) site selection criteria for Restaurants and plans and specifications for the development of Restaurants; (3) sales, marketing and advertising programs and techniques for Restaurants; (4) identity of suppliers, and knowledge of specifications and pricing for food products, materials, supplies and equipment, Franchisor authorizes; (5) knowledge of operating results and financial performance of Restaurants, other than those Restaurants Franchisee owns; (6) methods of inventory control, storage, product handling, training and management relating to Restaurants; (7) computer systems and software programs; and (8) any and all other information Franchisor provides to me, Franchisee, Franchisee's Owners or Affiliates that is designated orally or in writing as proprietary or confidential, or by its nature would reasonably be understood to be proprietary or confidential, regardless of whether such information is specifically designated as proprietary or confidential (collectively, all information referenced above, including examples (1) through (8), is known as the "Confidential Information"). Furthermore, any and all information, knowledge,
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Nondisclosure and Non-Competition Agreement specifies that certain information regarding the operation of Checkers restaurants is considered confidential.
Specifically, the agreement prohibits individuals associated with a Checkers franchisee from communicating or using the franchisor's proprietary information for the benefit of others. This includes, but is not limited to, knowledge of operating results and financial performance of Checkers restaurants, excluding those owned by the franchisee themselves.
This clause ensures that sensitive business data, such as financial performance metrics of other Checkers locations, remains confidential and isn't shared with competitors or used to undermine the brand. However, it does not prevent a franchisee from accessing and reviewing their OWN restaurant's financial data. A prospective franchisee should be aware of these confidentiality obligations and how they might impact their ability to discuss performance data with other franchisees.