Are Checkers' site selection criteria and restaurant development plans considered proprietary information?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We consider certain information relating to the development and operations of Restaurants to be our trade secrets and proprietary information. This information includes:
- (i) ingredients, recipes and methods of preparation and presentation of certain food products;
- (ii) site selection criteria for Restaurants and plans and specifications for the development of Restaurants;
- (iii) sales, marketing and advertising programs and techniques for Restaurants;
- (iv) identity of suppliers and knowledge of specifications and pricing for authorized food products, materials, supplies and equipment;
- (v) knowledge of operating results and financial performance of Restaurants, other than your Franchised Restaurant;
- (vi) methods of inventory control, storage, product handling and management of Restaurants;
- (vii) computer systems and software programs; and
- (viii) any and all other information we provide you 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 whether such information is specifically designated as proprietary or confidential.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 63–64)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers considers certain information relating to the development and operations of Restaurants to be trade secrets and proprietary information. This includes site selection criteria for Restaurants and plans and specifications for the development of Restaurants.
As a Checkers franchisee, you would be obligated to protect this information as confidential. Unauthorized disclosure or use of this information could have legal and financial repercussions, as it could potentially harm Checkers' competitive advantage.
This is a fairly standard practice in franchising, as franchisors typically have specific criteria and development plans that contribute to the brand's consistency and success. Protecting this information helps maintain uniformity and prevents competitors from replicating Checkers' model. Franchisees should carefully review the confidentiality clauses in the franchise agreement to fully understand their obligations.