What constitutes 'Confidential Information' related to the operation of a Craters & Freighters Franchised Business?
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.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, Confidential Information includes any proprietary information a franchisee becomes acquainted with, works with, or generates while operating their franchised business. This information is considered proprietary to Craters & Freighters. Confidential Information encompasses knowledge, know-how, standards, methods, and procedures related to establishing and operating the Craters & Freighters system.
Specifically, Confidential Information includes all records pertaining to customers, approved suppliers, and other service providers connected to the franchisee's business. This includes databases (in any format), names, addresses, phone numbers, email addresses, customer purchase records, manuals, promotional and marketing materials, and marketing strategies. Any other data that Craters & Freighters designates as confidential also falls under this definition.
The Craters & Freighters Franchise Agreement also defines 'Trade Secrets' as information that has independent economic value from not being generally known or easily discoverable by others who could profit from its disclosure or use. This includes formulas, patterns, compilations, programs, devices, methods, training techniques, or processes related to the Craters & Freighters system. Craters & Freighters must also take reasonable measures to keep this information secret.
Franchisees and their owners must keep Craters & Freighters' Confidential Information and Trade Secrets confidential, and they cannot use it for their own purposes or share it with others, except when reasonably necessary to operate the franchised business. Franchisees must also implement reasonable procedures to prevent unauthorized use or disclosure of this information. These confidentiality obligations remain in effect during the term of the Franchise Agreement and indefinitely after its termination, expiration, or non-renewal, which is a standard practice in franchising to protect the brand's proprietary assets.