What constitutes 'Trade Secrets' for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
"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 the 2025 Craters & Freighters Franchise Disclosure Document, trade secrets are defined as confidential information related to the Craters & Freighters system. This includes any formula, pattern, compilation, program, device, method, training technique, or process related to the Craters & Freighters system.
For information to be considered a trade secret, it must derive independent economic value, whether actual or potential, from not being generally known or easily ascertainable through proper means by others who could obtain economic value from its disclosure or use. Furthermore, Craters & Freighters must make reasonable efforts to maintain the secrecy of this information.
As a franchisee, you are obligated to keep Craters & Freighters' trade secrets confidential during the term of the Franchise Agreement and even after its termination, expiration, or non-renewal. This obligation extends to not using the trade secrets for your own purposes or divulging them to any other party, except when reasonably necessary to operate the franchised business. Franchisees must also implement reasonable procedures to prevent unauthorized use or disclosure of any confidential information or trade secrets, including those prescribed by Craters & Freighters.