Does the confidentiality obligation for Craters & Freighters franchisees expire after the termination of the Franchise Agreement?

According to Craters & Freighters' 2025 Franchise Disclosure Document, the confidentiality obligations for franchisees do not expire after the termination of the Franchise Agreement. The FDD states that these obligations remain in full force and effect during the term of the agreement and continue perpetually after termination, expiration, or non-renewal. This means that a franchisee's duty to protect Craters & Freighters' confidential information and trade secrets extends indefinitely, even after they are no longer operating a franchise.

This perpetual obligation has significant implications for a prospective Craters & Freighters franchisee. It means that even after leaving the franchise system, the franchisee cannot use or disclose any confidential information or trade secrets learned during their time as a franchisee. This includes knowledge of the System, customer lists, supplier information, marketing strategies, and any other data designated as confidential by Craters & Freighters.

The franchisee must also return or destroy any physical or electronic copies of items containing confidential information or trade secrets upon termination or expiration of the agreement. Furthermore, Craters & Freighters requires that the franchisee ensures all owners, officers, directors, shareholders, and partners, as well as the franchisee's spouse or significant other, execute a confidentiality and non-competition agreement, reinforcing the importance and broad reach of these obligations. This is stricter than many franchise systems, which often have confidentiality clauses that expire after a set number of years.