What are some examples of confidential information that a franchisee of Angry Chickz will receive?
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)
Based on the 2025 Angry Chickz Franchise Disclosure Document, franchisees and their employees are required to maintain the confidentiality of certain information. The document states that all information designated as confidential by either Angry Chickz or the franchisee must be held in strict confidence. This obligation extends to disclosing or using confidential information only as required by the employee's duties with the franchisee and continues even after the employee no longer holds that position.
While the FDD excerpt does not explicitly list examples of confidential information, it emphasizes the importance of protecting Angry Chickz's interests. Employees are prohibited from actions that could harm the franchisee or Angry Chickz, such as diverting customers or engaging in activities that negatively impact the goodwill associated with Angry Chickz's intellectual property. This suggests that customer lists, marketing strategies, and proprietary business practices would likely be considered confidential.
Furthermore, the document restricts employees from involvement with competing businesses. Specifically, employees cannot own, engage in, or provide services to any restaurant or business that specializes in boneless breaded chicken or closely resembles Angry Chickz restaurants. This restriction aims to protect Angry Chickz's unique business model and market position, implying that operational details, recipes, and restaurant design elements are also considered confidential information. A prospective franchisee should consult the full franchise agreement and related confidentiality agreements to understand the full scope of confidential information they will be responsible for protecting.