What steps must a Checkers franchisee take to protect Checkers' 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 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 63–64)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, franchisees have several obligations regarding the brand's confidential information, both during and after the franchise term. Checkers will disclose confidential information to the franchisee solely for use in operating the franchised restaurant. Franchisees must exert their best efforts to maintain the confidentiality of this information, regardless of its format.
The franchisee cannot use the confidential information in any other business or capacity, acknowledging that such use would be an unfair method of competition. Unauthorized copies of any portion of the confidential information are prohibited. Franchisees must implement all commercially reasonable procedures prescribed by Checkers to prevent unauthorized use or disclosure.
These procedures include requiring personnel who attend training or have access to confidential information to sign nondisclosure agreements in a form prescribed or approved by Checkers, and then delivering those agreements to Checkers. These measures aim to protect Checkers' trade secrets and proprietary information, ensuring that franchisees actively participate in maintaining confidentiality within their operations.