What is a Jersey Mikes franchisee prohibited from doing with the proprietary information disclosed to them?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
SEY MIKE'S franchises.
Proprietary Information
Your entire knowledge of the operation of a JERSEY MIKE'S Restaurant, including the knowledge or know-how regarding the specifications, standards and operating procedures of a JERSEY MIKE'S Restaurant is derived from information disclosed to you by Company, and certain of this information is proprietary, confidential and a trade secret of Company. You will maintain the absolute confidentiality of all proprietary information during and after the term of the Franchise Agreement and will not use any of this information in any other business or in any manner not specifically authorized or approved in writing by Company.
You will divulge confidential information only to your employees who must have access to it in order to operate the Franchised Restaurant. Any information, knowledge and know-how, including drawings, materials, equipment, techniques, restaurant systems, product formulae, recipes, methods, procedures and other data (including customer data) will be deemed confidential for pur poses of the Franchise Agreement, except information which you can demonstrate came to your attention, had become a part of the public domain, through publication or communication by others; or which, after disclosure to you by Company, becomes a part of the public domain, through publication or communication by others, so long a s such disclosure was not caused by you. Company is the sole owner of all confidential information.
All your employees having access to confidential information, agreements or other proprietary information of Company will sign confidentiality with confidentiality obligations no less stringent than those contained in your Franchise Agreement. Company may seek equitable relief for any breach of the terms of Sections 6, 7 and 8 of the Franchise Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 55–56)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, franchisees are strictly prohibited from using the brand's proprietary information in any unauthorized manner. This includes using the information in any other business or in any way that Jersey Mike's hasn't specifically approved in writing. This restriction applies both during the term of the Franchise Agreement and even after it ends. The franchisee can only share confidential details with employees who need the information to operate the Jersey Mike's restaurant.
This proprietary information encompasses a wide range of knowledge and know-how related to operating a Jersey Mike's restaurant. This includes, but isn't limited to, drawings, materials, equipment, techniques, restaurant systems, product formulas, recipes, and other data, including customer data. All of this information is considered confidential and belongs solely to Jersey Mike's. The franchisee must ensure that all employees who have access to this confidential information sign confidentiality agreements with obligations that are no less stringent than those in the Franchise Agreement.
Jersey Mike's retains ownership of its Confidential Operations Manual, which contains system standards, operating procedures, and rules. Franchisees must keep this manual confidential during and after the franchise term and must return all copies upon termination of the agreement. The franchisor can modify the manual at any time, and the master copy maintained by Jersey Mike's is controlling in case of disputes.
These restrictions are typical in franchising, as franchisors need to protect their brand's trade secrets and operational methods. A prospective Jersey Mike's franchisee should carefully review the confidentiality clauses in the Franchise Agreement to fully understand their obligations and the potential consequences of breaching these terms.