What happens if the Craters & Freighters franchisor designates data as confidential?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
In connection with the operation of the Franchised Business, Franchisee will from time to time become acquainted with, work with, and even generate certain information, procedures, techniques, data, and materials that are and, by this Agreement, will become proprietary to Franchisor. "Confidential Information" means certain confidential information relating to the operation of a Craters & Freighters Franchised Business which includes, but is not limited to, all knowledge, know-how, standards, methods and procedures related to the establishment and operation of the System and includes all records pertaining to customers, approved suppliers, and other service providers of, and/or related in any way to, Franchisee's Franchised Business including, without limitation, all databases (whether in print, electronic or other form), all names, addresses, phone numbers, e-mail addresses, customer purchase records, manuals, promotional and marketing materials, marketing strategies and any other data which Franchisor designates as confidential. "Trade Secret(s)" means information, including any formula, pattern, compilation, program, device, method, training technique or process related to the System that both derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
- 7.2 Confidentiality Obligations.
Franchisee and Franchisee's owner(s) agree they: (i) will keep confidential any of Franchisor's Confidential Information or Trade Secrets, (ii) will not use such for its or their own purpose or supply or divulge same to any person, firm, association, or corporation except as reasonably necessary to operate the Franchised Business, (iii) will adopt and implement all reasonable procedures, including those that Franchisor prescribes to prevent unauthorized use or disclosure of any Confidential Information or Trade Secrets.
The confidentiality obligations set forth in this section will remain in full force and effect during the term of this Agreement and in perpetuity after its termination or expiration and non-renewal.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, if the franchisor designates data as confidential, franchisees have specific obligations regarding that information. Craters & Freighters defines "Confidential Information" as data related to the operation of a Craters & Freighters franchised business, including knowledge, methods, customer records, supplier information, databases, marketing materials, and any other data the franchisor deems confidential.
As a franchisee, you must keep this Confidential Information secret and not use it for your own purposes or share it with others, unless it's reasonably necessary for operating the franchised business. You are also required to implement procedures to prevent unauthorized use or disclosure of this information.
These confidentiality obligations remain in effect during the term of the Franchise Agreement and continue indefinitely even after the agreement expires, terminates, or is not renewed. This means that even after you are no longer a Craters & Freighters franchisee, you are still legally bound to protect their confidential information.