During the Development Term or at any time thereafter, what is a Hardees developer prohibited from doing with trade secrets or confidential information of the Hardees System?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer shall not, during the Development Term or at any time thereafter, communicate or disclose any trade secrets or confidential or proprietary information or know-how of the Hardee's System to any unauthorized person, or do or perform, directly or indirectly, any other acts injurious or prejudicial to any of the Proprietary Marks or the Hardee's System. Any and all information, knowledge, know-how and techniques, including all drawings, materials, equipment, specifications, recipes, techniques and other data that HR or its affiliates designate as confidential shall be deemed confidential for purposes of this Agreement.
If Developer develops any new concepts, processes or improvements relating to the Hardee's System, Developer promptly shall notify HR and provide HR with all information regarding the new concept, process or improvement, all of which shall become the property of HR and its affiliates and which may be incorporated into the Hardee's System without any payment to Developer. Developer promptly shall take all actions deemed necessary or desirable by HR to vest in HR ownership of such concepts, processes or improvements.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a developer is prohibited from communicating or disclosing any trade secrets, confidential, or proprietary information of the Hardees System to any unauthorized person during the Development Term or at any time thereafter. They are also prohibited from performing any acts that could be injurious or prejudicial to any of the Proprietary Marks or the Hardees System.
This encompasses a broad range of information, knowledge, know-how, and techniques, including drawings, materials, equipment, specifications, recipes, techniques, and other data that Hardees or its affiliates designate as confidential. This obligation extends beyond the duration of the Development Term, meaning the developer must maintain confidentiality indefinitely.
Furthermore, if a developer creates any new concepts, processes, or improvements related to the Hardees System, they must promptly notify Hardees and provide all information about it. These innovations become the property of Hardees and its affiliates and can be incorporated into the Hardees System without any payment to the developer. The developer is required to take all actions deemed necessary by Hardees to legally transfer ownership of such concepts to Hardees.
These restrictions are typical in franchising to protect the brand's competitive advantage and proprietary information. A prospective Hardees developer should understand the breadth of information considered confidential and the ongoing nature of these obligations.