Can a Checkers franchisee make unauthorized copies of the Confidential Information?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We will disclose parts of our Confidential Information to you solely for your use in the operation of the Franchised Restaurant. The Confidential Information is proprietary and includes our trade secrets. During and after the Term: (a) you may not use the Confidential Information in any other business or capacity (as you hereby acknowledge that such prohibited use would be an unfair method of competition); (b) you must exert your best efforts to maintain the
confidentiality of the Confidential Information, regardless of its format or medium of transmission to you; (c) you may not make unauthorized copies of any portion of the Confidential Information; and (d) you must implement all commercially reasonable procedures we prescribe at any time and from time to time to prevent unauthorized use or disclosure of the Confidential Information, including requiring any of your personnel who attends training or who has the ability to access our Confidential Information, to sign nondisclosure agreements in a form we prescribe or approve and delivering those agreements to us.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from making unauthorized copies of any Confidential Information. The FDD states that franchisees "may not make unauthorized copies of any portion of the Confidential Information".
This restriction is in place to protect Checkers's proprietary information and trade secrets, which are essential to maintaining the brand's competitive edge. The Confidential Information includes a wide range of details related to the operation of Checkers restaurants, such as recipes, site selection criteria, marketing programs, supplier information, and operating procedures. Franchisees are expected to exert their best efforts to maintain the confidentiality of this information, regardless of its format or medium of transmission.
To further ensure the protection of Confidential Information, Checkers requires franchisees to implement commercially reasonable procedures to prevent unauthorized use or disclosure. This includes requiring personnel who attend training or have access to Confidential Information to sign nondisclosure agreements. These measures are typical in franchising to safeguard the franchisor's intellectual property and operational methods.