What is the scope of the non-disclosure agreement for Checkers, in terms of the Individual's association with the franchisee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
I agree that during the term of my employment by, ownership participation in, association with or service to Franchisee, or at any time thereafter, I will not communicate, divulge or use for the benefit of any other person, persons, partnership, proprietorship, association, corporation or entity, Franchisor's proprietary and confidential information relating to the development and operation of Restaurants, including but not limited to: (1) ingredients, recipes, and methods of preparation and presentation of food products Franchisor authorizes; (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, Franchisor authorizes; (5) knowledge of operating results and financial performance of Restaurants, other than those Restaurants Franchisee owns; (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 Franchisor provides to me, Franchisee, Franchisee's 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 (collectively, all information referenced above, including examples (1) through (8), is known as the "Confidential Information"). Furthermore, any and all information, knowledge,
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, the non-disclosure agreement extends to individuals associated with the franchisee, covering their employment, ownership participation, or service to the franchisee. This agreement ensures that these individuals, during and after their association with the franchisee, cannot disclose or use Checkers' confidential information for the benefit of others.
The confidential information includes various aspects of the Checkers business, such as ingredients, recipes, preparation methods, site selection criteria, marketing programs, supplier information, operating results, inventory control methods, computer systems, and any other information designated as proprietary or confidential. The agreement specifies that all such information, whether explicitly marked as confidential or reasonably understood to be so, falls under the purview of the non-disclosure terms.
This agreement aims to protect Checkers' proprietary information and maintain its competitive advantage. It prevents individuals associated with a franchisee from using insider knowledge to benefit competitors or disclose sensitive operational details. The agreement also acknowledges that information already in the public domain or known before disclosure is exempt, provided the individual did not cause the information to become public knowledge.