Is information concerning negotiations conducted by FSI considered confidential information for Fat Shack?
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, information concerning negotiations conducted by FSI is considered confidential information. The document specifies that certain proprietary information relating to FSI and its operations is treated as confidential. This includes, without limitation, all information concerning negotiations of any kind conducted by FSI, whether pending or completed.
This means that franchisees and their associates are obligated to keep any information about FSI's negotiations private. This encompasses a broad range of potential discussions, from vendor contracts to real estate deals or even potential mergers. Franchisees are prohibited from disclosing this information to any third party without prior written consent from Fat Shack Inc. (FSI).
The confidentiality extends not only to current franchisees but also to former franchisees and their associates, even after the termination or expiration of the Franchise Agreement. This obligation aims to protect Fat Shack's strategic interests and competitive advantage by preventing sensitive information from falling into the hands of competitors or other parties who could use it to the detriment of the Fat Shack system. Unauthorized disclosure or use of confidential information could result in legal action and financial penalties for the franchisee or associate.