What are the consequences if a Checkersrallys franchisee makes an unauthorized use or disclosure of Confidential Information?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.02 Termination Upon Notice.
In addition to our right to terminate pursuant to other provisions of this Agreement or under applicable law, we may terminate this Agreement, effective upon delivery of notice of termination to you:
- (d) if you or any of your Owners or Affiliates make any unauthorized use or disclosure of the Confidential Information;
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, if a franchisee or their owners or affiliates make an unauthorized use or disclosure of confidential information, Checkersrallys has the right to terminate the Franchise Agreement. This termination is effective immediately upon delivery of a termination notice to the franchisee.
Confidential information, as defined in the FDD, includes proprietary information related to the development and operation of Checkersrallys restaurants. This includes, but is not limited to, ingredients, recipes, methods of food preparation, site selection criteria, marketing programs, supplier information, operating results, inventory control methods, computer systems, and any other information designated as confidential.
This means that a Checkersrallys franchisee must take extreme care to protect all confidential information. Unauthorized disclosure or use, even by the franchisee's owners or affiliates, can lead to immediate termination of the franchise agreement. This could result in the loss of the business and any associated investment. Franchisees should ensure they understand what constitutes confidential information and implement strict procedures to prevent unauthorized access or disclosure by employees, managers, and any other parties with access to the information.