What are the Craters & Freighters Franchisee and Guarantor prohibited from doing regarding the agreement's terms?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of Franchisee and Guarantor acknowledges and agrees that this Agreement and matters discussed in relation thereto are entirely confidential.
It is therefore understood and agreed by Franchisee and Guarantor that neither of them will reveal, discuss, publish, or in any way communicate any of the terms, amount or fact of this Agreement to any person, organization or other entity, except to their respective officers, employees or professional representatives, or as required by law.
Source: Item 23 — RECEIPTS (FDD pages 50–193)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, both the franchisee and the guarantor are bound by confidentiality regarding the Franchise Agreement. Specifically, they are prohibited from disclosing the terms, amount, or existence of the agreement to any third party.
This restriction extends to any communication about the agreement's specifics, whether verbal, written, or otherwise. The only exceptions to this confidentiality clause are disclosures to their officers, employees, professional representatives (such as attorneys or accountants), or when disclosure is legally mandated.
This confidentiality clause is a standard practice in franchising to protect the franchisor's proprietary information and maintain consistent terms across all franchise agreements. Prospective Craters & Freighters franchisees should be aware of this obligation and ensure they can comply with it before entering into the agreement. Violation of this clause could lead to legal repercussions.
It is important for potential franchisees and guarantors to fully understand the scope of this confidentiality provision and seek legal counsel if they have any concerns about their ability to adhere to it. This will ensure they do not inadvertently breach the agreement and expose themselves to potential liability.