As a Hardees franchisee, what am I agreeing to regarding the trade secrets' economic value?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that the trade secrets derive independent economic value from not being generally known to and not readily ascertainable to others. You agree to hold in confidence and agree not to disclose or in any way make available to any unauthorized person any trade secret or any information regarding any trade secret or any proprietary information made available to you by us. You may disclose trade secrets only to your employees and agents with a legitimate need to know, each of whom you will warrant will be subject to this confidentiality requirement. You also agree not to contest our interest in the trade secrets and confidential and proprietary information that comprise the Hardee's System.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 61–62)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, as a franchisee, you acknowledge that the trade secrets associated with the Hardees system derive independent economic value from not being generally known or easily discoverable by others. This means Hardees's proprietary information, such as manuals, formulas, methods, customer information, and vendor lists, has value because it is confidential and gives Hardees a competitive advantage.
As a Hardees franchisee, you agree to maintain the confidentiality of these trade secrets and not disclose them to unauthorized individuals. You are permitted to share trade secrets only with your employees and agents who have a legitimate need to know the information, provided that they are also subject to confidentiality requirements. This ensures that the Hardees system's proprietary information remains protected and is not disseminated to competitors or the public.
Furthermore, as a Hardees franchisee, you agree not to contest Hardees's interest in these trade secrets and confidential information. This provision reinforces Hardees's ownership and control over its proprietary system and prevents franchisees from challenging Hardees's rights to protect its trade secrets. This is a standard practice in franchising, as the franchisor's brand and system are key assets that contribute to the success of the franchise network.