What is considered a Trade Secret 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's 2025 Franchise Disclosure Document, Trade Secrets, along with Confidential Information, are proprietary assets. These Trade Secrets are disclosed to franchisees during training and ongoing support, provided that the franchisee, its owners, and employees agree to maintain confidentiality through an enforceable confidentiality agreement. Franchisees are not prohibited from using this information in the operation of other Craters & Freighters franchises during the term of the Franchise Agreement.
The FDD specifies that Craters & Freighters' 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, information concerning product and service sales, operating results, financial performance and other financial data of Craters & Freighters Franchised Businesses and other related materials are considered Confidential Information. Where appropriate, certain information within this Confidential Information is also specifically identified as Trade Secrets.
Craters & Freighters requires franchisees to maintain the confidentiality of both Confidential Information and Trade Secrets, implementing reasonable procedures to prevent unauthorized disclosure. Furthermore, all owners, officers, directors, shareholders, and partners of the franchisee entity 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 ensures that all parties associated with the franchise are legally bound to protect Craters & Freighters' proprietary information.
If a franchisee becomes aware of unauthorized use of Craters & Freighters' copyrighted works, Confidential Information, or Trade Secrets, they must notify Craters & Freighters within three days. Craters & Freighters will then decide on the appropriate action to protect their rights, but they are not obligated to take any specific action. The franchisee is prohibited from contesting Craters & Freighters' rights to their copyrighted works, Confidential Information, or Trade Secrets and must only communicate with Craters & Freighters and their counsel regarding any potential infringement or challenges.