What specific legal remedies are available to Angry Chickz in the event of a breach of confidentiality?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
12.2.3 In view of the importance of the Marks and the Confidential Information and the incalculable and irreparable harm that would result to the parties in the event of a default of the covenants and agreements set forth in this Agreement, the parties agree that each party shall have the right to obtain specific performance, temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction to enforce the covenants and agreements in this Agreement, in addition to any other relief to which such party may be entitled at law or in equity. Each party submits to the jurisdiction of the courts of the state and Federal courts of the state where Company's headquarters is located. Franchisee agrees that Company may have temporary or preliminary injunctive relief without bond, but upon due notice, and Franchisee's sole remedy in the event of the entry of such injunctive relief will be the dissolution of the injunctive relief, if warranted, upon hearing duly had (all claims for damages by reason of the wrongful issuance of any the injunction being expressly waived).
- 12.2.4 To the maximum extent permitted by Applicable Law, Franchisee shall obtain covenants similar to those in Sections 12.1 and 12.2 from Restricted Persons, and such other management personnel that have access to the Confidential Information, as Company may specify.
Company may regulate the form of agreements Franchisee uses and may require that Company be an express third party beneficiary with the right to enforce such agreements.
Promptly upon Company's request, Franchisee shall deliver executed copies of such agreements to Company.
- 12.3 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 Franchisee or its Owners, employees or contractors, must be promptly disclosed to Company and will be deemed to be Company's sole and exclusive property and works madefor-hire for Company.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz has specific legal remedies available in the event of a breach of confidentiality. The franchise agreement states that due to the importance of the trademarks and confidential information, and the potential irreparable harm from a default, Angry Chickz has the right to obtain specific performance, temporary restraining orders, and preliminary injunctive relief from a court. This is in addition to any other legal or equitable remedies available. Franchisees agree to the jurisdiction of state and federal courts where Angry Chickz's headquarters are located. Angry Chickz may seek temporary or preliminary injunctive relief without posting a bond.
This means that if a franchisee or their restricted persons (employees, contractors, etc.) misuse or disclose Angry Chickz's confidential information, Angry Chickz can immediately seek court orders to stop the behavior. These orders can include specific performance (forcing the franchisee to comply with the agreement), temporary restraining orders (immediate, short-term halts to the activity), and preliminary injunctions (longer-term court orders preventing the activity while the case is ongoing). The franchisee's sole remedy if an injunction is entered is to seek dissolution of the injunction if warranted.
The franchise agreement emphasizes the importance of protecting Angry Chickz's confidential information, which is typical in franchising. Franchisors invest heavily in their systems and brand, and unauthorized use of confidential information can significantly damage their competitive advantage. The ability to obtain injunctive relief quickly is a powerful tool for Angry Chickz to protect its interests. Franchisees should understand the scope of confidential information and ensure their employees and contractors also maintain confidentiality through similar covenants.
The FDD also states that all ideas, concepts, techniques, or materials relating to a Restaurant ("Developments"), whether or not protectable intellectual property and whether created by or for Franchisee or its Owners, employees or contractors, must be promptly disclosed to Company and will be deemed to be Company's sole and exclusive property and works madefor-hire for Company. This further protects Angry Chickz's intellectual property and confidential information.