Can Restricted Persons acquire any interest in Angry Chickz's Confidential Information?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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 them in developing and operating the Franchised Business during the Term. 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 Franchised Business; (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 Manual(s), bulletins, supplements, confidential correspondence, or other confidential communications, whether written or oral. In addition to any procedures prescribed by Company, Franchisee shall implement reasonable procedures prevent unauthorized use and disclosure of the Confidential Information. If Franchisee has any reason to believe that any employee or Restricted Person has improperly used or disclosed the Confidential Information, Franchisee 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 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, a Restricted Person cannot acquire any interest in the Confidential Information beyond the right to use it for operating the Franchised Business during the term of the agreement. This means that while individuals such as employees or family members who have access to Angry Chickz's confidential information can use it to run the franchise, they do not gain any ownership or other rights to that information.
The franchise agreement specifies that any duplication or use of the Confidential Information outside of the Franchised Business constitutes unfair competition. Restricted Persons are prohibited from using the Confidential Information in any other business and must maintain its confidentiality both during and after the term of the franchise agreement. They are also barred from making unauthorized copies of any Confidential Information, including manuals, bulletins, correspondence, or other communications.
Angry Chickz franchisees are responsible for implementing reasonable procedures to prevent unauthorized use and disclosure of Confidential Information. If a franchisee suspects that an employee or Restricted Person has improperly used or disclosed Confidential Information, they must promptly notify Angry Chickz and cooperate in protecting against infringement or unlawful use. This may include legal action if deemed necessary by Angry Chickz. This is a fairly standard clause in franchise agreements to protect the brand's trade secrets and competitive advantage.