The very nature of franchising is that the franchisor obtains the same effect as it manages its own stores by sharing the same brand with its franchisees under a franchise agreement. In franchising, intellectual property, including trade secrets, is critical in maintaining the uniformity of products or services. Trade secrets are most valuable assets for running the franchise business and sustaining the system’s competitive advantage. With these trade secrets, franchisors can recruit franchisees and establish an appropriate level of franchise fees. In a typical franchise system, there are many different types of confidential information eligible for trade secrets. They include the franchise operations manual, business and marketing plans, recipes and formulas, customer and supplier information, proprietary computer technology, and so on. However, without careful controls and protective measures like noncompete and confidentiality agreements, franchisors run the risk of losing trade secrets, especially when they deliver them to the franchisees. This study reviews significant litigation cases and addresses several key issues with respect to the protection of trade secrets in franchising. Despite the importance of the subject, academic research on trade secrets protection in franchising is rare in Korea. With a thorough review of the extant research and court decisions in the United States, this study is expected to contribute to the understanding of the managerial and legal aspects of the trade secrets protection and consequently the sound development of the Korean franchising industry.