What are the specific obligations of a Restricted Person regarding Angry Chickz's Confidential Information?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- 8.1.2 Developer shall obtain covenants similar to those in Sections 8.1 and 8.2 from Restricted Persons, and such other personnel, as Company may specify. Company may require that Company be an express third-party beneficiary with the right to enforce such agreements. Promptly upon Company's request, Developer shall deliver executed copies of such agreements to Company.
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 may have access to the company's proprietary and confidential information, including standards, procedures, concepts, methods, and techniques for developing and operating a restaurant. This information may be disclosed in operations manuals, bulletins, supplements, confidential correspondence, training programs, and other guidance materials. The Restricted Person does not acquire any interest in the confidential information beyond the right to use it for developing Angry Chickz restaurants. Duplication or use of this information in any other business is considered an unfair method of competition.
The obligations of a Restricted Person are to not use the confidential information in any business other than the development of Angry Chickz restaurants. They must maintain absolute confidentiality during and after their term and refrain from disclosing the information. Unauthorized copying of any portion of the confidential information, whether written or oral, is prohibited. The developer must implement reasonable procedures to prevent unauthorized use and disclosure.
Furthermore, if the developer believes that any employee or Restricted Person has improperly used or disclosed confidential information, they must promptly notify Angry Chickz and cooperate to protect the company against infringement or unlawful use, including legal action if deemed necessary. Angry Chickz may also require the developer to obtain confidentiality and non-competition covenants from Restricted Persons and other personnel, potentially as a third-party beneficiary with enforcement rights. The developer must provide executed copies of these agreements upon request.