Does Checkers consider knowledge of operating results and financial performance of other Checkers Restaurants (excluding the franchisee's) to be proprietary information?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ting securities, by contract or otherwise.
"Restaurants" – [INSERT BRAND: Checkers/Rally's] restaurants we or any of our Affiliates own, operate or franchise that use the Marks and System.
"Competitive Business" – Any business that: (i) operates as a restaurant or similar food-service provider and derives more than twenty percent (20%) of its revenue from selling hamburgers, cheeseburgers and hot dogs in a fast-food, quick-service, drive-thru or drive-in format; or (ii) grants franchises or licenses to others to operate the type of business specified in subparagraph (i) (other than a "Checkers" or "Rally's"-branded restaurant operated under a franchise agreement with us).
"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
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 63–64)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the brand considers knowledge of operating results and financial performance of Checkers Restaurants, excluding the franchisee's own restaurant, to be proprietary information. This means Checkers treats this data as confidential and a trade secret.
As a prospective franchisee, this designation means you will likely be restricted from sharing or using this information outside of your franchise operations. Checkers aims to protect its competitive advantage and maintain the confidentiality of its business operations by controlling access to this data. This is a fairly standard practice in franchising, as franchisors typically want to prevent sensitive information from falling into the hands of competitors or being misused by franchisees.
The FDD defines 'Confidential Information' to include knowledge of operating results and financial performance of Restaurants, other than Restaurants you own. This definition is further reinforced in Item 14, which lists the same information as trade secrets and proprietary information. Franchisees should be aware of these restrictions and ensure they comply with Checkers' confidentiality requirements to avoid potential legal issues or termination of their franchise agreement.