Does the Checkers agreement specify that information designated orally as confidential is also considered Confidential Information?
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 franchise agreement does specify that information designated orally as confidential is considered Confidential Information. This includes any information Checkers provides to the franchisee, their owners, or affiliates that is designated either orally or in writing as proprietary or confidential. This also extends to information that, by its nature, would reasonably be understood to be proprietary or confidential, regardless of whether it is specifically marked as such.
This means that Checkers franchisees must treat information received verbally as confidential, just as they would treat written information. This obligation extends to the franchisee, their owners, and any affiliates involved in the business. The agreement emphasizes that it is the franchisee's responsibility to understand and maintain the confidentiality of this information, regardless of how it is communicated.
This clause protects Checkers' sensitive business data, including recipes, operational methods, and marketing strategies. Franchisees must ensure that they and their staff understand what constitutes Confidential Information and take appropriate measures to protect it. Failure to comply with these confidentiality obligations could result in legal repercussions or termination of the franchise agreement.