Does Checkersrallys consider knowledge of the operating results and financial performance of other Checkersrallys Restaurants (excluding the franchisee's own) to be proprietary information?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
"Confidential Information" - Our proprietary and confidential information relating to the development and operation of Restaurants, including: (1) ingredients, recipes, and methods of preparation and presentation of food products we authorize; (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 authorized food products, materials, supplies and equipment, we authorize; (5) knowledge of operating results and financial performance of Restaurants, other than Restaurants you own; (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 we provide you, your 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.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 63–64)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, Checkersrallys considers knowledge of the operating results and financial performance of other Checkersrallys Restaurants (excluding the franchisee's own) to be proprietary information. This is explicitly stated in Item 23 under the definition of "Confidential Information".
This classification as confidential information means that franchisees are restricted from sharing or using this data for any purpose outside of operating their own franchise. Checkersrallys aims to protect the financial data of its franchisees and maintain a competitive advantage by keeping this information private.
As a prospective franchisee, understanding what Checkersrallys considers confidential is crucial. Franchisees are obligated to protect this information, and any unauthorized disclosure or use could lead to legal repercussions or termination of the franchise agreement. This is a common practice in franchising, as franchisors typically have a vested interest in maintaining the confidentiality of their business operations and financial data.