What constitutes an unfair method of competition regarding Angry Chickz's Confidential Information?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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 FDD, an unfair method of competition regarding confidential information includes actions by individuals holding positions with franchisees that could harm the Angry Chickz franchise. Specifically, this involves divulging or using confidential information outside the scope of their duties with the franchisee. This obligation to maintain confidentiality extends even after the individual no longer holds a position with the franchisee.
The FDD outlines specific actions that are considered harmful to the Angry Chickz franchise. These include diverting or attempting to divert customers away from the franchisee to another business. It also includes any action that is detrimental or damaging to the goodwill associated with Angry Chickz's intellectual property.
Furthermore, while holding a position with the franchisee, individuals are prohibited from owning, engaging in, or providing services to any restaurant or business that specializes in boneless breaded chicken, if 25% or more of its gross sales are derived from such products. This restriction also applies to businesses involved in the wholesale production or sale of boneless breaded chicken products. Additionally, individuals cannot be involved with any restaurant or business that closely resembles Angry Chickz in terms of appearance, trade dress, or overall operation. An exception exists for owning less than a 5% beneficial interest in a publicly-held corporation.
These restrictions are designed to protect Angry Chickz's market position and proprietary information. Prospective franchisees should ensure that all individuals working for them in key positions are aware of and agree to these confidentiality and non-competition terms, as outlined in the Confidentiality and Non-Competition Agreement.