What are franchisees prohibited from doing with Checkers' Confidential Information?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We will disclose parts of our Confidential Information solely for your use in the operation of the business contemplated by this agreement.
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 your managers and assistant managers, and any other 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 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, franchisees receive confidential information to operate their business. This information is considered proprietary and includes trade secrets.
During and after the franchise term, franchisees are restricted from using Checkers' confidential information in any business or capacity other than their Checkers franchise. The FDD states that such unauthorized use would be considered an unfair method of competition. Franchisees must also make their best effort to keep the information confidential, regardless of how it was transmitted.
Additionally, franchisees cannot make unauthorized copies of any confidential information. They must also follow Checkers' procedures to prevent unauthorized use or disclosure. This includes requiring managers, assistant managers, and other personnel with access to confidential information to sign nondisclosure agreements. These agreements must be in a form prescribed or approved by Checkers and then delivered to Checkers.