Does the Checkers agreement specify that knowledge of operating results of the franchisee's own restaurants is considered confidential information?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
"Confidential Information" – Our proprietary and confidential information relating to the development and operation of Restaurants, including: (1) ingredients, recipes, and methods of preparation and presentation of food products we authorize; (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, we authorize; (5) knowledge of operating results and financial performance of Restaurants, other than the Franchised Restaurant and other Restaurants you own; (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 we provide you, your 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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the agreement specifies what information is considered confidential. It states that knowledge of operating results and financial performance of restaurants is considered confidential information, but this excludes the franchisee's own restaurants. This means that while franchisees are obligated to keep Checkers' proprietary information private, they are not bound to keep the operating results and financial performance of their own Checkers restaurants confidential under the terms of the agreement.
This distinction is important for prospective franchisees because it allows them to openly discuss the performance of their specific locations without violating the confidentiality terms of the franchise agreement. This can be beneficial for seeking financing, consulting with business advisors, or even comparing notes with other franchisees about their individual restaurant's performance.
However, franchisees should be aware that other information related to the operation of Checkers restaurants, such as recipes, marketing strategies, and supplier information, is still considered confidential. Franchisees must take appropriate measures to protect this information and prevent its unauthorized disclosure, as outlined in the franchise agreement. This includes implementing procedures to safeguard confidential data and ensuring that employees sign non-disclosure agreements.