What is the Craters & Freighters Franchisee's obligation regarding confidentiality of the agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
erial term of this Agreement. The Franchisee Releasing Parties further acknowledge and agree that no violation of this Agreement will void the release set forth in this Agreement.
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- 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.
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- Representation by Counsel.
Source: Item 23 — RECEIPTS (FDD pages 50–193)
What This Means (2025 FDD)
According to the 2025 FDD, Craters & Freighters requires both the franchisee and any guarantor to maintain the confidentiality of the Franchise Agreement and related discussions. This means the franchisee cannot disclose the terms, amount, or existence of the agreement to anyone, except their officers, employees, professional representatives, or when legally required. This obligation ensures that sensitive business information remains protected.
This confidentiality clause is a standard practice in franchising to protect the franchisor's business strategies and financial details. By keeping the agreement confidential, Craters & Freighters aims to prevent competitors or other franchisees from gaining an unfair advantage. The franchisee's commitment to confidentiality is a material term of the agreement, and any violation will not void the release outlined in the agreement.
Prospective Craters & Freighters franchisees should understand that this confidentiality extends to all discussions related to the agreement. While franchisees can seek advice from professionals, they must ensure these advisors also maintain confidentiality. This clause remains in effect throughout the term of the agreement and potentially beyond, depending on the specific terms outlined in the franchise agreement. Franchisees should consult with legal counsel to fully understand the scope and implications of this confidentiality provision.