Does the obligation to disclose Developments to Angry Chickz apply to Developments created by the Developer's employees or contractors?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.3 Certain Developments.
All ideas, concepts, techniques, or materials relating to a Restaurant ("Developments"), whether or not protectable intellectual property and whether created by or for Developer or its Owners, employees or contractors, must be promptly disclosed to Company and will be deemed to be Company's sole and exclusive property.
Developer assigns ownership of that item, and all related rights to that item, to Company.
The Company will sign and cause its Owners, employees and contractors to sign whatever assignment or other documents Company requests to evidence Company's ownership and to help Company obtain intellectual property rights in the item.
Developer may not use any Developments in operating a Restaurant or otherwise without Company's prior written approval.
Developer waives all moral rights in the Developments and will cause all of its Owners, employees and contractors to waive all moral rights in the Developments.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the obligation to disclose "Developments" extends to those created by the Developer's employees or contractors. The FDD defines "Developments" as all ideas, concepts, techniques, or materials relating to a Restaurant, regardless of whether they are protectable intellectual property.
This means that if a franchisee, their employees, or their contractors come up with any new ideas related to the Angry Chickz restaurant, they must promptly disclose these to Angry Chickz. These "Developments" are deemed to be the sole and exclusive property of Angry Chickz, and the franchisee must assign ownership of the item and all related rights to Angry Chickz.
Furthermore, the franchisee must ensure that their Owners, employees, and contractors sign any documents Angry Chickz requests to evidence their ownership and to help them obtain intellectual property rights. The franchisee is also prohibited from using any Developments in operating a Restaurant without Angry Chickz's prior written approval and must ensure that all involved parties waive their moral rights in the Developments.