For Hardees, what is the permitted use of Confidential Information by the applicant and other individuals during the evaluation of a franchise opportunity?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Applicant and Other Individuals may use the Confidential Information solely for the purposes of evaluating whether or not to pursue a franchise opportunity with HR and for participating in the Training Programs. Except as expressly authorized by HR in writing, Applicant and Other Individuals agree to maintain all Confidential Information in strict confidence and not to use, or permit others to use, Confidential Information for any other purpose. Applicant will not disclose any Confidential Information to anyone other than Applicant's employees and/or third parties authorized by HR to receive Confidential Information, each of whom: (1) has a reasonable need to know the Confidential Information in connection with the evaluation of the franchise opportunity; (2) has been advised of the confidential nature of the
Confidential Information; and (3) if requested by HR, has signed an agreement, in a form satisfactory to HR, obligating the employee or third party to comply with all the provisions of this Agreement. The obligations of non-use and non-disclosure with respect to particular items of Confidential Information will remain in effect indefinitely.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, both the applicant and other individuals involved in evaluating a franchise opportunity with Hardees are permitted to use Confidential Information solely to assess whether to pursue the franchise and to participate in required training programs. This includes attending Discovery Day and other training programs deemed necessary by Hardees. Confidential Information encompasses a wide array of proprietary details, such as trade secrets, business methods, data processes, formulas, designs, know-how, maps, and trade area analyses.
Hardees mandates that all Confidential Information be maintained in strict confidence and not be used for any purpose other than evaluating the franchise opportunity, unless expressly authorized in writing by Hardees. The applicant is restricted from disclosing Confidential Information to anyone except their employees or third parties specifically authorized by Hardees to receive it. These authorized recipients must have a legitimate need to know the information for the evaluation, be informed of its confidential nature, and, if requested by Hardees, sign an agreement to comply with all confidentiality provisions.
The obligations to protect and not misuse the Confidential Information remain in effect indefinitely, ensuring long-term protection of Hardees' proprietary assets. This is a standard practice in franchising, as franchisors need to protect their operational methods and trade secrets.
For a prospective Hardees franchisee, this means that any information received during the evaluation process, including training, must be treated with utmost confidentiality. It also means that the franchisee must ensure that their employees and any third parties they involve are also bound by the same confidentiality obligations, potentially requiring them to sign agreements to that effect. Failure to comply with these confidentiality requirements could lead to legal repercussions and damage the relationship with Hardees.