Who is bound by the confidentiality agreement in the Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidentiality.
Each of Franchisee and Guarantor acknowledges and agrees that this Agreement and matters discussed in relation thereto are entirely confidential.
It is therefore understood and agreed by Franchisee and Guarantor that neither of them will reveal, discuss, publish, or in any way communicate any of the terms, amount or fact of this Agreement to any person, organization or other entity, except to their respective officers, employees or professional representatives, or as required by law.
Source: Item 23 — RECEIPTS (FDD pages 50–193)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the confidentiality agreement applies to the franchisee and the guarantor. The franchisee and guarantor agree that the agreement itself and related discussions are confidential. They are prohibited from revealing, discussing, publishing, or communicating any terms, amounts, or facts of the agreement to any person, organization, or other entity.
There are exceptions to this confidentiality. Disclosure is permitted to their respective officers, employees, or professional representatives, or as required by law. This ensures that the franchisee can seek necessary advice and comply with legal obligations without breaching the confidentiality terms.
This type of confidentiality clause is common in franchise agreements to protect sensitive business information and maintain the franchisor's competitive advantage. Prospective Craters & Freighters franchisees should understand the scope of this clause and ensure they can comply with its terms, particularly regarding discussions with third parties.