What constitutes 'Confidential Information' for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
In connection with the operation of the Franchised Business, Franchisee will from time to time become acquainted with, work with, and even generate certain information, procedures, techniques, data, and materials that are and, by this Agreement, will become proprietary to Franchisor. "Confidential Information" means certain confidential information relating to the operation of a Craters & Freighters Franchised Business which includes, but is not limited to, all knowledge, know-how, standards, methods and procedures related to the establishment and operation of the System and includes all records pertaining to customers, approved suppliers, and other service providers of, and/or related in any way to, Franchisee's Franchised Business including, without limitation, all databases (whether in print, electronic or other form), all names, addresses, phone numbers, e-mail addresses, customer purchase records, manuals, promotional and marketing materials, marketing strategies and any other data which Franchisor designates as confidential. "Trade Secret(s)" means information, including any formula, pattern, compilation, program, device, method, training technique or process related to the System that both derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
- 7.2 Confidentiality Obligations.
Franchisee and Franchisee's owner(s) agree they: (i) will keep confidential any of Franchisor's Confidential Information or Trade Secrets, (ii) will not use such for its or their own purpose or supply or divulge same to any person, firm, association, or corporation except as reasonably necessary to operate the Franchised Business, (iii) will adopt and implement all reasonable procedures, including those that Franchisor prescribes to prevent unauthorized use or disclosure of any Confidential Information or Trade Secrets.
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.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, Confidential Information includes proprietary information related to the operation of a Craters & Freighters Franchised Business. This encompasses knowledge, know-how, standards, methods, and procedures for establishing and operating the Craters & Freighters system. It also includes records pertaining to customers, approved suppliers, and other service providers related to the franchisee's business.
Specifically, Confidential Information includes databases (in any format), names, addresses, phone numbers, email addresses, customer purchase records, manuals, promotional and marketing materials, marketing strategies, and any other data that Craters & Freighters designates as confidential. Trade Secrets are defined as information that has independent economic value from not being generally known or easily ascertainable, and which Craters & Freighters takes reasonable measures to keep secret. This can include formulas, patterns, compilations, programs, devices, methods, training techniques, or processes related to the Craters & Freighters system.
As a franchisee, you are obligated to maintain the confidentiality of this information during the term of the Franchise Agreement and perpetually after its termination, expiration, or non-renewal. You must not use this information for your own purposes or disclose it to others, except as necessary to operate the franchised business. Furthermore, you must implement reasonable procedures to prevent unauthorized use or disclosure of Confidential Information and Trade Secrets, including those prescribed by Craters & Freighters.
This broad definition of Confidential Information and the perpetual confidentiality obligations highlight the importance of safeguarding Craters & Freighters' proprietary assets. Prospective franchisees should carefully consider these obligations and ensure they have the resources and commitment to protect this information.