Does Jack In The Box require all owners to sign a Confidentiality and Non-Competition Agreement?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
et, Ladera Ranch CA 92694 | (949) 689-2450 | 562 N Main St, Tooele, UT 84074 | | Garren Grieve | | 3 Julia Street, Ladera Ranch CA 92694 | (949) 689-2450 | 4380 W 3500 S, West Valley City, UT 84120 | | Paul Urbina | | 11411 NE 124th St., #170, Kirkland WA 98034 | (425) 285- 1906 | Auburn-Black Diamond Rd & Ten Trails Pkwy, Black Diamond, WA 98375 | | Paul Urbina | | 11411 NE 124th St., #170, Kirkland WA 98034 | (425) 285- 1906 | NE Woodinville Duvall Rd & Avondale Rd NE, Woodinville, WA |## ATTACHMENT C
CONFIDENTIALITY AND NON-COMPETITION AGREEMENT (For Shareholders, Partners, Members)
Site No. ####
CONFIDENTIALITY & NON-COMPETITION AGREEMENT (For Shareholders, Partners, Members)
This Confidentiality and Non-Competition Agreement ("Agreement") is entered into as of Today's Date between Different Rules, LLC ("Company") and Franchise Operator, Guarantor, and Guarantor ("Owner") (collectively, "Owner").
Recitals
Company has entered into a Development Agreement and/or Franchise Agreement with Entity Name, a Entity State corporation/limited liability company ("Franchisee") relating to the development and operation of one or more Jack in the Box® restaurants under an operating system created and maintained by the Company (the "System"). Owner is an officer, director, or holder of a beneficial interest of Franchisee, and/or of any corporation directly or indirectly controlling Franchisee. Due to his/her financial interest or other involvement in Franchisee, Owner may have access to information regarding the development and operation of the JACK IN THE BOX® business (including, but not limited to Company's Operating Manual) that is considered by the Parties to be confidential and/or trade secret. Company is willing to provide access to such information under the terms of this Agreement.
Accordingly, Owner agrees as follows:
1. CONFIDENTIAL INFORMATION
1.1. Owner understands and acknowledges that Company has invested, and continues to invest, considerable sums of money in developing the System. Because of the competitive nature of the restaurant business, and to protect the legitimate interest of Company and other franchisees, it is necessary to protect certain information about the System as confidential.
1.2. For purposes of this provision, "Confidential Information" includes product recipes and tests, ingredients used in Company's products, product preparation procedures, customer service measures and techniques, franchise support procedures, supplier relationship and distribution system information, new product development information, the Manual (as defined in Section 2 below), growth plans or strategies, real estate development plans or strategies, restaurant design plans, proposed restaurant sites, equipment, computer systems, business and development plans and strategies, training programs, consumer research results, marketing and advertising strategies and materials, and all other information designated by Company as confidential.
1.3. Confidential Information does not include: (a) information, concepts, methods, procedures or techniques that are, or become, generally known in the quickservice and quick-casual restaurant industries in the United States, other than through disclosure by Franchisee or Owner, whether deliberate or inadvertent; (b) the disclosure of Confidential Information in judicial or administrative proceedings to the extent that Franchisee or Owner is legally compelled to disclose such information, provided that Franchisee and/or Owner has afforded Company with the opportunity to obtain an appropriate protect order or other assurance that the information will be treated as confidential; or (c) information that Franchisee or Owner can demonstrate came to its attention prior to disclosure thereof by Company.
1.4. Franchisee will be provided with Confidential Information in connection with its development and/or operation of the Franchised Business.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to the 2025 Jack In The Box FDD, the franchise requires that owners, defined as Franchise Operator, Guarantor, and Guarantor, sign a Confidentiality and Non-Competition Agreement. This agreement is in place because owners, due to their financial interest or involvement with the franchisee, may have access to confidential information regarding the development and operation of the Jack In The Box business. This includes access to the company's operating manual, which the company considers confidential and/or a trade secret.
The agreement ensures that owners acknowledge the specialized training and confidential information they receive, including details about the company's development, operational, sales, promotional, and marketing methods. During the term of any Development Agreement or Franchise Agreement, owners are restricted from diverting business or customers to competitors, or performing any act injurious to the goodwill associated with Jack In The Box's proprietary marks and system.
Furthermore, during the agreement term, owners are prohibited from having any interest in a restaurant business with a similar format to Jack In The Box, where 20% or more of sales are comprised of core menu items like hamburgers, specialty sandwiches, and tacos. Even after the expiration or termination of all agreements, for one year, owners are restricted from engaging in any business that utilizes or discloses confidential information or trade secrets associated with the Jack In The Box system.