What actions are Hardees franchisees prohibited from taking regarding confidential information without written permission from CKR, PAR Brink, and CrunchTime?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 Confidential Information. Franchisee shall protect the Confidential Information as trade secrets of CKR, PAR Brink and CrunchTime. Franchisee agrees that it shall not, without the written permission of CKR, PAR Brink and CrunchTime: (a) modify any Confidential Information; (b) reverse engineer, decompile, decrypt or disassemble the Confidential Information or attempt to do so; (c) transfer, rent, lease, lend or sublicense any Confidential Information to anyone for any purpose; or (d) reveal or disclose any Confidential Information for any purpose to any other person, firm, corporation or other entity, other than Franchisee's employees with a need to know that Confidential Information, to perform employment responsibilities consistent with Franchisee's rights under this Agreement. Franchisee shall safeguard and protect the Confidential Information from theft, piracy or unauthorized access in a manner at least consistent with the protections Franchisee uses to protect its own most confidential information. Franchisee shall inform its employees of their obligations under this Agreement and shall take those steps as may be reasonable in the circumstances, or as may be reasonably requested by CKR, PAR Brink and CrunchTime, to prevent any unauthorized disclosure, copying or use of the Confidential Information.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, franchisees are restricted from certain actions regarding confidential information related to CKR, PAR Brink, and CrunchTime. Specifically, without prior written consent, a Hardees franchisee cannot modify any confidential information. They are also prohibited from reverse engineering, decompiling, decrypting, or disassembling the confidential information, or even attempting to do so.
Furthermore, Hardees franchisees are not allowed to transfer, rent, lease, lend, or sublicense any confidential information to anyone for any purpose. The franchisee is also barred from revealing or disclosing any confidential information for any purpose to any individual, firm, corporation, or other entity. The only exception to this is disclosing to the franchisee's employees who need to know the confidential information to perform their job responsibilities, consistent with the franchisee's rights under the agreement.
These restrictions are typical in franchising to protect the brand's proprietary information and maintain a competitive advantage. Franchisees must safeguard confidential information from theft, piracy, or unauthorized access, using protections at least as strong as those used for their own confidential information. They must also inform their employees of their confidentiality obligations and take reasonable steps to prevent unauthorized disclosure, copying, or use of the information. If a franchisee discovers any prohibited use or disclosure, they must immediately notify CKR and cooperate to regain possession of the information and prevent further unauthorized use.