Can a Checkersrallys franchisee make copies 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 are restricted from making unauthorized copies of the Confidential Information. Checkersrallys will disclose Confidential Information to the franchisee solely for use in operating the business. This information is considered proprietary and includes trade secrets.
The agreement specifies that during and after the term of the franchise agreement, the franchisee must not make unauthorized copies of any portion of the Confidential Information, regardless of its format or how it was transmitted. The franchisee also needs to exert their best efforts to maintain the confidentiality of this information.
To prevent unauthorized use or disclosure, Checkersrallys requires franchisees to implement commercially reasonable procedures. These procedures include requiring managers, assistant managers, and any personnel with access to the Confidential Information to sign nondisclosure agreements. These agreements must be in a form prescribed or approved by Checkersrallys and then delivered to them.