factual

As a Hardees franchisee, can I disclose trade secrets to my employees?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee acknowledges and agrees that: (1) HR owns all right, title and interest in and to the System; (2) the System includes trade secrets and confidential and proprietary information and know-how that gives HR a competitive advantage; (3) the trade secrets and confidential and proprietary information and know-how derive independent economic value to HR from not being generally known to and not readily ascertainable by others; (4) HR has taken all measures appropriate to protect the trade secrets and the confidentiality of the proprietary information and know-how of the System; (5) all material or other information now or hereafter provided or disclosed to Franchisee regarding the System is disclosed in confidence; (6) Franchisee has no right to disclose any part of the System to anyone who is not an employee of Franchisee; (7) Franchisee will disclose to its employees only those parts of the System that an employee needs to know; (8) Franchisee will have a system in place to ensure that its employees keep confidential HR's trade secrets and confidential and proprietary information, and, if requested by HR, Franchisee shall obtain from those of its employees designated by HR an executed Confidential Disclosure Agreement in the form prescribed by HR; (9) by entering into this Agreement, Franchisee does not acquire any ownership interest in the System; and (10) Franchisee's use or duplication of the System or any part of the System in any other business, or disclosure of any part of the System to others for use or duplication in any other business, would constitute an unfair method of competition, for which HR would be entitled to all legal and equitable remedies, including injunctive relief, without posting a bond.

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, franchisees are permitted to disclose trade secrets to their employees under specific conditions. Franchisees can only disclose those parts of the Hardees System that an employee needs to know.

Hardees requires franchisees to have a system in place to ensure that their employees maintain the confidentiality of Hardees's trade secrets and proprietary information. Furthermore, if Hardees requests it, franchisees must obtain a signed Confidential Disclosure Agreement from designated employees, using a form prescribed by Hardees.

This means that while franchisees can share necessary information with employees, they must actively manage and protect Hardees's confidential information through internal systems and formal agreements, especially when Hardees requires specific documentation. Failure to comply with these confidentiality requirements could result in legal repercussions for the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.