What is considered Confidential Information for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Our Operations Manuals, electronic information and communications, sales and promotional materials, the development and use of our system, standards, specifications, policies, procedures, information, concepts and systems on, knowledge of and experience in the development, operation and franchising of Craters & Freighters Franchised Businesses, and training techniques used to provide services, information concerning product and service sales, operating results, financial performance and other financial data of Craters & Freighters Franchised Businesses and other related materials are proprietary and confidential ("Confidential Information") and are considered to be our property to be used by you only as described in the Franchise Agreement or the Operations Manuals. Where appropriate, certain information has also been identified as trade secrets ("Trade Secrets"). You must maintain the confidentiality of our Confidential Information and Trade Secrets and adopt reasonable procedures to prevent unauthorized disclosure of our Trade Secrets and Confidential Information. You must ensure and require that all of the owners, officers, directors, shareholders, and partners of the franchisee entity execute a prescribed form of confidentiality and non-competition agreement that will be in substantially the same form attached to the Franchise Agreement as Exhibit E ("Confidentiality and Non-Competition Agreement").
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 34–35)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, Confidential Information includes the Operations Manuals, electronic information and communications, sales and promotional materials, the development and use of their system, standards, specifications, policies, procedures, information, concepts and systems, knowledge of and experience in the development, operation and franchising of Craters & Freighters Franchised Businesses, and training techniques used to provide services. It also encompasses information concerning product and service sales, operating results, financial performance and other financial data of Craters & Freighters Franchised Businesses, and other related materials. Certain information may also be identified as trade secrets.
Craters & Freighters requires franchisees to maintain the confidentiality of this information and implement reasonable procedures to prevent unauthorized disclosure. This obligation extends to all owners, officers, directors, shareholders, and partners of the franchisee entity, who must execute a confidentiality and non-competition agreement. This agreement is in substantially the same form as Exhibit E attached to the Franchise Agreement.
This means that as a Craters & Freighters franchisee, you will have access to sensitive business information that is critical to the success of your franchise. However, you are legally bound to protect this information and prevent it from falling into the hands of competitors or being used in any way that could harm Craters & Freighters. The confidentiality and non-competition agreement ensures that all parties involved in the franchise operation are aware of and committed to these obligations. Failing to uphold these confidentiality obligations could result in legal action and damage the relationship with Craters & Freighters.