What is the Craters & Freighters Guarantor's obligation regarding confidentiality of the agreement?
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 obligated to maintain the confidentiality of the franchise agreement and related discussions. This means they cannot disclose the terms, amount, or existence of the agreement to any third party.
The confidentiality obligation extends to anyone outside of their respective officers, employees, and professional representatives (such as attorneys or accountants), unless disclosure is required by law. This restriction aims to protect Craters & Freighters' proprietary information and maintain the secrecy of the agreement's specific details.
This confidentiality clause is a standard practice in franchising to prevent sensitive business information from being shared with competitors or used in a way that could harm the franchise system. Prospective Craters & Freighters franchisees and their guarantors should understand that breaching this confidentiality could have legal and financial consequences.