Is the franchisee's knowledge of Jersey Mikes restaurant operations considered proprietary information?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the knowledge that a franchisee gains about the operation of a Jersey Mike's restaurant is considered proprietary information. This includes knowledge and know-how regarding the specifications, standards, and operating procedures. Jersey Mike's emphasizes that this information is derived from disclosures made by the company and is confidential, constituting a trade secret.
The franchisee is obligated to maintain the confidentiality of this proprietary information both during and after the term of the Franchise Agreement. They are restricted from using this information in any other business or manner not explicitly authorized or approved in writing by Jersey Mike's. This extends to drawings, materials, equipment, techniques, restaurant systems, product formulae, recipes, methods, procedures, and other data, including customer data.
Franchisees are permitted to share confidential information only with employees who require access to it for operating the franchised restaurant. Jersey Mike's retains sole ownership of all confidential information. Employees who have access to confidential information must also sign confidentiality agreements with obligations that are no less stringent than those in the Franchise Agreement. Jersey Mike's reserves the right to seek legal remedies for any breach of these confidentiality terms.
This emphasis on proprietary information is typical in franchising, as it protects the brand's unique operational methods and trade secrets. Prospective Jersey Mike's franchisees should carefully review the confidentiality clauses in the Franchise Agreement to understand the full scope of their obligations.