What are the three exceptions to what Angry Chickz considers 'Confidential Information'?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
12.2.2 "Confidential Information" shall not include information which: (a) has entered the public domain or was known to Franchisee prior to Company's disclosure of such information to Franchisee, other than by the breach of an obligation of confidentiality owed (by anyone) to Company or its Affiliates; (b) becomes known to the Restricted Persons from a source other than Company or its Affiliates and other than by the breach of an obligation of confidentiality owed (by anyone) to Company or its Affiliates; or (c) was independently developed by Franchisee without the use or benefit of any of Company's Confidential Information. The burden of proving the applicability of the foregoing will reside with Franchisee.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, certain information is not considered confidential. This is important for prospective franchisees to understand, as it defines the boundaries of what they must protect versus what is considered public knowledge or independently obtained.
The three exceptions are:
- Information that has already entered the public domain or was known to the franchisee before Angry Chickz disclosed it, as long as this prior knowledge wasn't due to a breach of confidentiality. This means if the franchisee already knew the information legitimately, or it's generally available to the public, it's not confidential.
- Information that becomes known to the franchisee from a source other than Angry Chickz or its affiliates, again, provided there's no breach of confidentiality involved. If the franchisee learns something from an independent, legitimate source, it's not considered confidential information that they are bound to protect.
- Information that was independently developed by the franchisee without using or benefiting from any of Angry Chickz's confidential information. If the franchisee creates something on their own without relying on Angry Chickz's secrets, it's not confidential.
The FDD stipulates that the franchisee bears the burden of proving that any of these exceptions apply. This means that if Angry Chickz claims a franchisee has disclosed confidential information, the franchisee must demonstrate that the information falls under one of these three exceptions.