What is included in the 'Confidential Information' related to FSI and Fat Shack operations?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Associate recognizes and agrees that certain proprietary information relating to FSI and its operations ("Confidential Information") is owned by and treated as
confidential by FSI and Company, including without limitation, (1) the Licensed Methods; (2) all proprietary information concerning FSI's business, the FAT SHACK Restaurants, and the FAT SHACK Restaurant business format and operating procedures; (3) sales methods; (4) formulas, recipes, or processes related to any products sold at FAT SHACK Restaurants; (5) all financial information of FSI and Company other than financial information filed with any government regulatory agency; (6) information regarding the design, décor and layout of FAT SHACK Restaurants; (7) franchise sales processes and promotional methods and materials; (8) all nonpublic statistical information; (9) the strategic plan, budgets and projections for FSI; (10) all information concerning negotiations of any kind conducted by FSI whether pending or completed; (11) all marketing research data and marketing plans; (12) all lead generation or prospecting methods; (13) all information contained in FSI's operations manual, and any other manual, written instructional guides, or other nonpublic written information; (14) internal lists of FSI's current and former franchisees, area developers, and customers of FSI and its franchisees and area developers, including contact information such as physical addresses and e-mail addresses thereof; and (15) all other information which gives FSI and its affiliates an opportunity to obtain an advantage over their competitors or that may be considered a trade secret or proprietary and such Confidential Information that may be further developed from time to time by FSI. Such Confidential Information is unique, exclusive property and a trade secret of FSI.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, confidential information relating to FSI and its operations includes a comprehensive list of proprietary assets. This encompasses the Licensed Methods, proprietary business information, the Fat Shack restaurant business format, and operating procedures. It also extends to sales methods, formulas, recipes, and processes related to products sold at Fat Shack Restaurants.
Confidential Information also includes all financial information of FSI and Company (excluding what's filed with government regulatory agencies), the design, décor, and layout of Fat Shack Restaurants, franchise sales processes, promotional methods and materials, and all nonpublic statistical information. The strategic plan, budgets, projections for FSI, information concerning negotiations, marketing research data, marketing plans, and lead generation or prospecting methods are also considered confidential.
Furthermore, all information contained in FSI's operations manual, other manuals, written instructional guides, or other nonpublic written information, and internal lists of FSI's current and former franchisees, area developers, and customers (including contact information) are included. Finally, any other information that gives FSI and its affiliates a competitive advantage or that may be considered a trade secret or proprietary is deemed confidential. This information is considered unique, exclusive property, and a trade secret of FSI.
For a prospective franchisee, this definition means that a wide array of information, from recipes to marketing plans, is protected and cannot be disclosed to third parties. This is a standard practice in franchising, as it protects the franchisor's brand and competitive advantage. Franchisees should be aware of the breadth of this definition and ensure they maintain the confidentiality of all such information, both during and after the franchise agreement.