What efforts must a Checkersrallys franchisee exert to maintain the confidentiality of the Confidential Information?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, franchisees have specific obligations regarding the confidentiality of Checkersrallys's proprietary 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 business.
As a Checkersrallys franchisee, you must exert your best efforts to maintain the confidentiality of the Confidential Information, regardless of its format. This includes not making unauthorized copies of the information. You are also prohibited from using the Confidential Information in any other business or capacity, as Checkersrallys considers such use an unfair method of competition.
To prevent unauthorized use or disclosure, Checkersrallys requires franchisees to implement all commercially reasonable procedures that Checkersrallys prescribes. This includes requiring managers, assistant managers, and any personnel who attend training or have access to Checkersrallys's Confidential Information to sign nondisclosure agreements. These agreements must be in a form prescribed or approved by Checkersrallys, and franchisees must deliver the signed agreements to Checkersrallys.