After termination or expiration of the Craters & Freighters agreement, is the franchisee required to discontinue the use of confidential information and trade secrets?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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Agreement, Franchisee must destroy or return to Franchisor any physical copies or electronic versions of items bearing or containing any of the Marks.
- 20.1.3 Discontinue Use of Confidential Information and Trade Secrets. Franchisee must discontinue the use, in any manner, or for any purpose, directly or indirectly, of any of Franchisor's Confidential Information, Trade Secrets, or any other aspect of the System. At the option of Franchisor, Franchisee must destroy or return to Franchisor any physical copies or electronic versions of items containing any Confidential Information, Trade Secrets, or any other aspect of the System.
- 20.1.4 Discontinue Telephone Numbers.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees are required to discontinue the use of confidential information and trade secrets after the termination or expiration of the franchise agreement. Specifically, the franchisee must discontinue using any of Craters & Freighters' confidential information, trade secrets, or any other aspect of the system in any manner or for any purpose, whether directly or indirectly.
At Craters & Freighters' option, the franchisee must destroy or return any physical or electronic copies of items containing confidential information, trade secrets, or any other aspect of the system. This obligation ensures that the franchisee does not use Craters & Freighters' proprietary information to compete with the franchisor or other franchisees after the agreement ends.
Furthermore, the confidentiality obligations outlined in the franchise agreement remain in full effect during the term of the agreement and continue indefinitely after termination, expiration, or non-renewal. This perpetual obligation reinforces the importance of protecting Craters & Freighters' confidential information and trade secrets, which are critical to maintaining the brand's competitive advantage and system standards.