What is the Jersey Mike's Developer obligated to do regarding the confidentiality of proprietary information both during and after the franchise term?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.2 Developer acknowledges that its entire knowledge of the operation of a JERSEY MIKE'S Restaurant, including without limitation the method of preparation of sandwiches and other food products and other specifications, product formulae, standards and restaurant operating procedures of a JERSEY MIKE'S Restaurants, is derived from information disclosed to Developer by Franchisor and that certain of such information is proprietary, confidential and a trade secret of Franchisor.
Developer agrees that it shall maintain the absolute confidentially of all such proprietary information during and after the term of the franchise and that it shall not use any such information in any other business or in any manner not specifically authorized or approved in writing by Franchisor.
- 6.3 Developer shall divulge such confidential information only to such of its employees as must have access to it in order to operate the Developer's Business.
Any and all information, knowledge and know-how, including, without limitation, drawings, materials, equipment, techniques, restaurant systems, product formulas, recipes and other data, which Franchisor designated as confidential shall be deemed confidential for purposes of this Agreement, except information which Developer can demonstrate came to its attention prior to disclosure by Franchisor; or which, at the time of disclosure by Franchisor to Developer, had become part of the public domain, through publication or communication by others, so long as such disclosure was not caused by Developer.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the Developer is obligated to maintain the absolute confidentiality of all proprietary information both during and after the term of the franchise agreement. This includes, but is not limited to, the method of preparation of sandwiches and other food products, specifications, product formulae, standards, and restaurant operating procedures. The Developer cannot use this information in any other business or in any manner not specifically authorized or approved in writing by Jersey Mike's.
The Developer is permitted to share confidential information only with employees who need access to it to operate the Developer's business. All information, knowledge, and know-how designated as confidential by Jersey Mike's is deemed confidential, including drawings, materials, equipment, techniques, restaurant systems, product formulas, recipes, and other data. The exceptions to this are information that the Developer possessed prior to disclosure by Jersey Mike's, or information that was already in the public domain at the time of disclosure, provided the Developer was not responsible for the information becoming public.
This obligation ensures that Jersey Mike's trade secrets and proprietary information remain protected, preventing unfair competition and maintaining the integrity of the Jersey Mike's system. A prospective developer should understand the breadth of information considered confidential and the importance of safeguarding it, as breaches could lead to legal and financial repercussions. This is a standard practice in franchising, as franchisors rely on protecting their intellectual property to maintain a competitive advantage and consistency across all franchise locations.