What must a Craters & Freighters franchisee do to maintain the confidentiality of Confidential Information and Trade Secrets?
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").
We will disclose parts of the Confidential Information and Trade Secrets to you as we deem necessary or advisable for the development of your Franchised Business during training and in guidance and assistance furnished to you under the Franchise Agreement, and you may learn or obtain from us additional Confidential Information and Trade Secrets during the term of the Franchise Agreement. The Confidential Information and Trade Secrets are valuable assets of ours and are disclosed to you on the condition that you, and your owners, if you are a business entity, and employees agree to maintain the information in confidence by entering into a confidentiality agreement that we can enforce. Nothing contained in the Franchise Agreement will be construed
to prohibit you from using the Confidential Information or Trade Secrets in the operation of other Craters & Freighters Franchised Businesses during the term of the Franchise Agreement.
You must notify us within three days after you learn about another's use of language, a visual image, or a recording of any kind, that you perceive to be identical or substantially similar to one of our Copyrighted Works or use of our Confidential Information or Trade Secrets or if someone challenges your use of our Copyrighted Works, Confidential Information or Trade Secrets.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 34–35)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees must maintain the confidentiality of the franchisor's Confidential Information and Trade Secrets. Franchisees must adopt reasonable procedures to prevent unauthorized disclosure. This includes ensuring that all owners, officers, directors, shareholders, and partners of the franchisee entity execute a prescribed form of confidentiality and non-competition agreement. This agreement will be in substantially the same form attached to the Franchise Agreement as Exhibit E, called the "Confidentiality and Non-Competition Agreement."
Craters & Freighters considers its Operations Manuals, electronic information and communications, sales and promotional materials, the development and use of its 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 as proprietary and confidential. Certain information is also identified as trade secrets.
In the event a franchisee learns of another party using language, a visual image, or a recording of any kind, that the franchisee perceives to be identical or substantially similar to one of Craters & Freighters' Copyrighted Works or use of their Confidential Information or Trade Secrets, the franchisee must notify Craters & Freighters within three days. The franchisee must also notify Craters & Freighters if someone challenges their use of Craters & Freighters' Copyrighted Works, Confidential Information or Trade Secrets. The franchisee must not directly or indirectly contest Craters & Freighters' rights to any of their Copyrighted Works, Confidential Information or Trade Secrets and may not communicate with anyone except Craters & Freighters and their counsel with respect to any infringement, challenge or claim.