Under what circumstances can an associate disclose Fat Shack's confidential information to other employees?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Associate may disclose to other employees, agents, or representatives of FSI or Company the Confidential Information only to the extent necessary for such employees, agents or representatives to carry out their intended function. Associate acknowledges that any unauthorized disclosure or use of the Confidential Information would be wrongful and would cause irreparable injury and harm to Company. Associate further acknowledges that Company has expended a great amount of effort and money in obtaining and developing the Confidential Information, that Company has taken numerous precautions to guard the secrecy of the Confidential Information and that it would be very costly for competitors to acquire or duplicate the Confidential Information.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, an associate can disclose confidential information to other employees, agents, or representatives of Fat Shack or its affiliated companies (FSI) only to the extent necessary for those individuals to perform their job functions. This means that the disclosure must be directly related to and required for the other employees, agents, or representatives to carry out their intended duties within the organization.
This policy is in place to protect Fat Shack's confidential information, which is considered a key asset. Unauthorized disclosure or use of this information could cause significant harm to the company. The confidential information includes, but is not limited to, the Licensed Methods, proprietary business information, sales methods, recipes, financial data, restaurant design, marketing plans, and internal lists of franchisees and customers.
For a prospective Fat Shack franchisee, this means that they need to ensure their employees understand the limitations on disclosing confidential information. Training and clear communication are essential to prevent accidental or intentional breaches. Franchisees must also implement measures to safeguard confidential information and ensure that it is only accessible to those who need it for their work.