What is the franchisee's obligation regarding confidentiality of the Craters & Freighters agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidentiality.
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 any guarantor are obligated to maintain the confidentiality of the franchise agreement and related discussions. This means that the franchisee and guarantor cannot disclose the terms, amount, or existence of the agreement to any third party.
The confidentiality obligation has some exceptions. Disclosure is permitted to the franchisee's and guarantor's officers, employees, and professional representatives, such as attorneys or accountants. Disclosure is also allowed if required by law.
This confidentiality clause is a standard practice in franchising to protect the franchisor's proprietary information and maintain the integrity of the franchise system. Prospective Craters & Freighters franchisees should understand that they are legally bound to keep the details of their franchise agreement private, with limited exceptions for professional advice or legal requirements. Violation of this clause could lead to legal repercussions.