What constitutes an unauthorized use or disclosure of Confidential Information that could lead to termination of the Checkers agreement?

According to Checkers' 2025 Franchise Disclosure Document, the unauthorized use or disclosure of confidential information by the franchisee, their owners, or affiliates can lead to the termination of the franchise agreement.

Checkers defines "Confidential Information" as proprietary information related to the development and operation of Restaurants. This includes, but is not limited to, ingredients, recipes, preparation methods, site selection criteria, marketing programs, supplier information, operating results, inventory control methods, computer systems, and any other information designated as confidential. The franchise agreement emphasizes that franchisees must exert their best efforts to maintain the confidentiality of this information, avoid unauthorized copies, and implement procedures to prevent unauthorized use or disclosure.

This provision is significant for prospective franchisees as it highlights the importance of safeguarding Checkers' proprietary information. Failure to protect this information, whether intentional or unintentional, can have serious consequences, including the termination of the franchise agreement. Franchisees should ensure they understand what constitutes Confidential Information and take appropriate measures to protect it, including having managers and assistant managers sign non-disclosure agreements.