After the termination or expiration and non-renewal of the Craters & Freighters Franchise Agreement, what must the franchisee do with items incorporating Confidential Information or Trade Secrets?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ligations 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. Upon the termination or expiration and non-renewal of this Agreement, all items, records, documentation, and recordings incorporating any Confidential Information or Trade Secrets will be immediately turned over by Franchisee, at Franchisee's sole expense, to Franchisor or to Franchisor's authorized representative. Franchisee must ensure and require that all of Franchisee's owners, officers, directors, shareholders, and partners (each a "Restricted Person" and, collectively, "Restricted Persons") execute a prescribed form of confidentiality and non-competition agreement that will be in substantially the same form attached to this Agreement as Attachment F ("Confidentiality and Non-Competition Agreement"). Franchisee must obtain a signed copy of the Confidentiality and Non-Competition Agreement from every such Restricted Person prior to, or at the same time of, that Restricted Person undertaking its role with Franchisee. Franchisee's spouse or significant other will also be bound by the same requirement and will sign the same Confidentiality and Non-Competition Agreement. Franchisee must provide Franchisor with a copy of each signed Confidentiality and Non-Competition Agreement within ten (10) days of executing such Confidentiality and Non-Competition Agreement.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, after the termination, expiration, or non-renewal of the Franchise Agreement, the franchisee has specific obligations regarding confidential information and trade secrets. The franchisee must immediately turn over all items, records, documentation, and recordings that incorporate any Confidential Information or Trade Secrets to Craters & Freighters or its authorized representative. This transfer must be done at the franchisee's sole expense.
Additionally, the franchisee must discontinue any use of Craters & Freighters' Confidential Information, Trade Secrets, or any other aspect of the System. At Craters & Freighters's option, the franchisee must either destroy or return any physical or electronic copies of items containing Confidential Information, Trade Secrets, or any other aspect of the System.
Furthermore, the confidentiality obligations outlined in the agreement remain in full effect even after the termination, expiration, or non-renewal of the agreement. This means the franchisee's duty to protect and not misuse Craters & Freighters's proprietary information extends indefinitely beyond the franchise term. The franchisee must also ensure that all owners, officers, directors, shareholders, partners, and even their spouse or significant other, have signed a Confidentiality and Non-Competition Agreement.