What is a required action for a Jersey Mikes developer regarding confidential materials and information furnished by the franchisor?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Developer shall at all times preserve in confidence any and all materials and information furnished or disclosed to Developer by Franchisor, and Developer shall disclose such information or materials only to such of its employees or agents who must have access to it in connection with their employment. Developer shall not at any time, without Franchisor's prior written consent, copy, duplicate, record or otherwise reproduce such materials or information, in whole or in part, nor otherwise make the same available to any unauthorized person.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, a developer is required to maintain the confidentiality of all materials and information provided by Jersey Mikes. This obligation includes not disclosing such information to unauthorized individuals and only sharing it with employees or agents who require access for their work. The developer must also refrain from copying, duplicating, recording, or reproducing these materials without prior written consent from Jersey Mikes.
This confidentiality requirement extends to knowledge of Jersey Mikes's restaurant operations, including methods of preparing food, specifications, product formulas, standards, and operating procedures. The developer must maintain absolute confidentiality regarding this proprietary information both during and after the term of the franchise agreement and cannot use it in any other business without written authorization from Jersey Mikes.
The FDD specifies that confidential information should only be shared with employees who need it to operate the developer's business. Any information designated as confidential by Jersey Mikes, such as drawings, materials, equipment, techniques, restaurant systems, product formulas, recipes, and other data, is considered confidential unless the developer can prove it was already known or in the public domain before disclosure by Jersey Mikes. This ensures that Jersey Mikes's trade secrets and proprietary information remain protected, giving them a competitive advantage.
For a prospective Jersey Mikes developer, this means understanding the importance of safeguarding confidential information and implementing strict protocols to prevent unauthorized access or disclosure. Failure to comply with these confidentiality obligations could result in legal action and termination of the development agreement. Therefore, it is crucial for developers to train their employees on these requirements and ensure they understand the sensitivity of the information they handle.