Under what circumstances can an Angry Chickz franchisee use the Confidential Materials and Practices?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
I will hold in strict confidence all information designated by the Franchisor or the Franchisee as confidential, and I will disclose and/or use the confidential information only in connection with my duties as required by my position with the Franchisee.
My undertaking not to disclose confidential information is a condition of my position with the Franchisee, and continues even after I cease to be in that position.
While in my position with the Franchisee, I will not do anything which may injure the Franchisee or the Franchisor, such as: (a) divert or attempt to divert actual or prospective customers of the Franchisee to any other person or entity; or (b) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Franchisor's intellectual property.
While in my position with the Franchisee, I will not own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any restaurant or business that (i) specializes in developing, owning, operating or franchising restaurants 25% or more of whose gross sales is derived from the sale of boneless breaded chicken; (ii) any business engaged in the preparation, production or sale, at wholesale, of any boneless breaded chicken food products; or (iii) any restaurant or business that looks like, copies, imitates, operates with similar trade dress or décor, or is otherwise substantially the same as or similar to Angry Chickz Restaurants.
This restriction does not apply to my ownership of less than a five percent (5%) beneficial interest in the outstanding securities of any publicly-held corporation.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD page 38)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, an individual is permitted to use confidential information only in connection with their duties as required by their position with the franchisee. This means that access and usage are strictly tied to the role and responsibilities held within the Angry Chickz franchise.
The document emphasizes that maintaining the confidentiality of information designated by either the franchisor or the franchisee is a strict condition of employment. This obligation extends beyond the period of employment, meaning that even after an individual ceases to be in a position with the franchisee, they are still bound by the confidentiality agreement. This is a common practice in franchising to protect proprietary information and trade secrets.
Furthermore, while in a position with the franchisee, an individual is prohibited from engaging in any activities that could harm the franchisee or franchisor. This includes diverting customers, engaging in actions prejudicial to the franchisor's intellectual property, or having any involvement with competing businesses that specialize in boneless breaded chicken or resemble Angry Chickz restaurants. The restriction on involvement with competing businesses does not apply to ownership of less than a five percent beneficial interest in the securities of any publicly-held corporation.