Do the confidentiality obligations for Craters & Freighters continue after the Restricted Person's relationship with the Franchisee ends?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
The confidentiality obligations set forth in this section will remain in full force and effect during the term of this Agreement and in perpetuity after its termination or expiration and non-renewal.
Upon the termination or expiration and non-renewal of this Agreement, all items, records, documentation, and recordings incorporating any Confidential Information or Trade Secrets will be immediately turned over by Franchisee, at Franchisee's sole expense, to Franchisor or to Franchisor's authorized representative.
Franchisee must ensure and require that all of Franchisee's owners, officers, directors, shareholders, and partners (each a "Restricted Person" and, collectively, "Restricted Persons") execute a prescribed form of confidentiality and non-competition agreement that will be in substantially the same form attached to this Agreement as Attachment F ("Confidentiality and Non-Competition Agreement").
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the confidentiality obligations do extend beyond the term of the Franchise Agreement. Franchisees and their owners must maintain the confidentiality of Craters & Freighters's confidential information and trade secrets both during the agreement and perpetually after its termination, expiration, or non-renewal. This obligation ensures that sensitive business information remains protected even after the franchisee's association with Craters & Freighters ends.
This perpetual confidentiality requirement means that franchisees and their owners cannot disclose or use Craters & Freighters's proprietary information for their own benefit or the benefit of others, even after they are no longer part of the Craters & Freighters system. This includes information about the System, customer data, supplier information, marketing strategies, and any other data designated as confidential by Craters & Freighters. Franchisees are also required to return all items, records, documentation, and recordings incorporating any Confidential Information or Trade Secrets to Craters & Freighters upon termination or expiration of the agreement.
To ensure compliance, Craters & Freighters requires that all owners, officers, directors, shareholders, and partners of the franchisee execute a confidentiality and non-competition agreement. This agreement reinforces the perpetual confidentiality obligations and helps protect Craters & Freighters's competitive advantage. Prospective franchisees should carefully review the terms of the Confidentiality and Non-Competition Agreement to understand the full scope of their obligations and potential liabilities.