What is a Restricted Person prohibited from doing with Angry Chickz's Confidential Information?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.1.1 Restricted Persons may have access to proprietary and Confidential Information, including the Standards, procedures, concepts and methods and techniques of developing and operating a Restaurant. Company may disclose certain of its Confidential Information to Restricted Persons in the operations manuals(s), bulletins, supplements, confidential correspondence, or other communications, and through Company's training program and other guidance and management assistance. No Restricted Person shall acquire any interest in the Confidential Information other than the right to use it in developing a Restaurant. A Restricted Person's duplication or use of the Confidential Information in any other endeavor or business shall constitute an unfair method of competition. Each Restricted Person shall: (i) not use the Confidential Information in any business or other endeavor other than in connection with the development of Restaurants; (ii) refrain from disclosing the Confidential Information and maintain the absolute confidentiality of the Confidential Information during and after the Term; and (iii) make no unauthorized copy of any portion of the Confidential Information, including the operations manual(s), bulletins, supplements, confidential correspondence, or other confidential communications, whether written or oral. Developer shall implement reasonable procedures prevent unauthorized use and disclosure of the Confidential Information. If Developer has any reason to believe that any employee or Restricted Person has improperly used or disclosed the Confidential Information, Developer shall promptly notify Company and shall cooperate with Company to protect Company against infringement or other unlawful use, including, the prosecution of any lawsuits if, in the judgment of Company, such action is necessary or advisable.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a Restricted Person is prohibited from using the Confidential Information in any business or other endeavor other than in connection with the development of Angry Chickz Restaurants. They must also refrain from disclosing the Confidential Information and maintain its absolute confidentiality both during and after their term. Additionally, Restricted Persons are prohibited from making unauthorized copies of any portion of the Confidential Information, including operations manuals, bulletins, supplements, confidential correspondence, or other confidential communications, whether written or oral.
This means that anyone defined as a Restricted Person (likely employees or those with access to sensitive business data) is legally bound to protect Angry Chickz's proprietary information. This obligation extends beyond their period of association with the franchise. The franchise agreement emphasizes that any unauthorized use or duplication of this information constitutes an unfair method of competition.
For a prospective Angry Chickz franchisee, this highlights the importance of carefully managing access to confidential information within their own operations. They are responsible for implementing reasonable procedures to prevent unauthorized use and disclosure. Furthermore, the franchisee must obtain confidentiality covenants from Restricted Persons, ensuring these individuals are also legally obligated to protect Angry Chickz's Confidential Information. Angry Chickz may also require that they be a third-party beneficiary with the right to enforce such agreements.
If a franchisee suspects any improper use or disclosure of Confidential Information by an employee or Restricted Person, they are required to promptly notify Angry Chickz and cooperate in protecting the company against infringement or other unlawful use. This may include participating in lawsuits if deemed necessary by Angry Chickz. This clause underscores the shared responsibility between the franchisor and franchisee in safeguarding the Angry Chickz system and its proprietary information.