Does the confidentiality agreement for Angry Chickz apply to individuals holding positions with franchisees?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
Exhibit E
Confidentiality Agreement
ANGRY CHICKZ FRANCHISING LLC
CONFIDENTIALITY AND NON-COMPETITION AGREEMENT (for persons holding positions with franchisees)
I will hold in strict confidence all information designated by the Franchisor or the Franchisee as confidential, and I will disclose and/or use the confidential information only in connection with my duties as required by my position with the Franchisee.
My undertaking not to disclose confidential information is a condition of my position with the Franchisee, and continues even after I cease to be in that position.
While in my position with the Franchisee, I will not do anything which may injure the Franchisee or the Franchisor, such as: (a) divert or attempt to divert actual or prospective customers of the Franchisee to any other person or entity; or (b) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Franchisor's intellectual property.
While in my position with the Franchisee, I will not own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any restaurant or business that (i) specializes in developing, owning, operating or franchising restaurants 25% or more of whose gross sales is derived from the sale of boneless breaded chicken; (ii) any business engaged in the preparation, production or sale, at wholesale, of any boneless breaded chicken food products; or (iii) any restaurant or business that looks like, copies, imitates, operates with similar trade dress or décor, or is otherwise substantially the same as or similar to Angry Chickz Restaurants.
This restriction does not apply to my ownership of less than a five percent (5%) beneficial interest in the outstanding securities of any publicly-held corporation.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the confidentiality agreement does apply to individuals holding positions with franchisees. Exhibit E of the FDD is titled "Confidentiality and Non-Competition Agreement (for persons holding positions with franchisees)", which indicates that individuals in positions with an Angry Chickz franchisee are subject to a confidentiality and non-competition agreement.
The agreement mandates that individuals in positions with the franchisee must hold all information designated as confidential by either the franchisor or franchisee in strict confidence. They are only allowed to disclose or use this confidential information as required by their duties within their position. This obligation is a condition of their employment and continues even after they no longer hold that position.
Furthermore, while employed by the franchisee, these individuals are prohibited from actions that could harm the franchisee or Angry Chickz, such as diverting customers or engaging in activities detrimental to the goodwill associated with Angry Chickz's intellectual property. They are also restricted from owning, engaging in, or providing services to any restaurant or business that specializes in boneless breaded chicken, prepares or sells boneless breaded chicken food products wholesale, or imitates Angry Chickz restaurants. This restriction does not apply to ownership of less than a 5% beneficial interest in publicly-held corporations.