What procedures must a Checkersrallys franchisee implement to prevent unauthorized use or disclosure of 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 must implement commercially reasonable procedures to prevent unauthorized use or disclosure of confidential information. These procedures are those that Checkersrallys prescribes, and may change over time.
Specifically, Checkersrallys requires franchisees to have their managers, assistant managers, and any other personnel who attend training or have access to Checkersrallys' confidential information sign nondisclosure agreements. These agreements must be in a form that Checkersrallys prescribes or approves. Franchisees are then responsible for delivering these signed agreements to Checkersrallys.
This requirement ensures that individuals with access to sensitive information are legally bound to protect it. The definition of Confidential Information is broad, covering various aspects of the Checkersrallys business, including recipes, site selection criteria, marketing techniques, supplier information, operating results, and computer systems. By mandating nondisclosure agreements and adherence to prescribed procedures, Checkersrallys aims to safeguard its proprietary information and maintain a competitive advantage.