What am I prohibited from doing with Checkersrallys' confidential information?
Checkersrallys 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 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 63–64)
What This Means (2025 FDD)
According to Checkersrallys' 2025 Franchise Disclosure Document, franchisees are restricted in how they can use the franchisor's confidential information, both during and after the term of the franchise agreement. Checkersrallys will disclose confidential information, including trade secrets, solely for the franchisee's use in operating the franchised business.
During and after the franchise term, franchisees are prohibited from using the confidential information in any business or capacity other than operating their Checkersrallys franchise. This restriction acknowledges that using the information in another business would constitute an unfair method of competition. Franchisees must also make their best effort to maintain the confidentiality of the information, regardless of how it was transmitted.
Additionally, franchisees cannot make unauthorized copies of the confidential information and must implement commercially reasonable procedures to prevent unauthorized use or disclosure. This includes requiring managers, assistant managers, and other personnel with access to the information to sign nondisclosure agreements. These measures are designed to protect Checkersrallys' proprietary information and maintain its competitive advantage.