What security measures might a Craters & Freighters franchisee need to implement to protect their systems?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1 Confidential Information and Trade Secrets.
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 the 2025 Craters & Freighters Franchise Disclosure Document, franchisees must protect the confidentiality of the franchisor's information and trade secrets. This includes adopting and implementing all reasonable procedures, including those that Craters & Freighters prescribes, to prevent unauthorized use or disclosure of any Confidential Information or Trade Secrets. These obligations remain in effect during the term of the Franchise Agreement and indefinitely after its termination, expiration, or non-renewal.
Confidential Information includes knowledge, know-how, standards, methods, and procedures related to the establishment and operation of the Craters & Freighters system. It also encompasses all records pertaining to customers, approved suppliers, and other service providers, including databases, names, addresses, phone numbers, email addresses, customer purchase records, manuals, promotional and marketing materials, marketing strategies, and any other data designated as confidential by Craters & Freighters.
Trade Secrets include information such as formulas, patterns, compilations, programs, devices, methods, training techniques, or processes related to the Craters & Freighters system. This information derives independent economic value from not being generally known and is subject to reasonable efforts to maintain its secrecy. Franchisees are prohibited from using Confidential Information or Trade Secrets for their own purposes or divulging them to any third party, except as reasonably necessary to operate the franchised business.
In practice, a Craters & Freighters franchisee will likely need to implement various security measures to protect this information. These could include physical security measures to protect documents and equipment, cybersecurity measures to protect electronic data, and policies and procedures to ensure that employees understand and comply with confidentiality obligations. Franchisees should consult with legal and IT professionals to determine the specific security measures that are appropriate for their business.