What is the consideration for the Confidentiality and Non-Competition Agreement for trained employees and managers of Bb.Q Chicken?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration for such specialized training, trade secrets and confidential information (including, without limitation, information regarding the operational, sales, promotional and marketing methods and techniques of us and the System which are beyond the present skills and experience of you and the Principal(s) and your managers and employees), you and the Principal(s) covenant that with respect to you, during the term of this Agreement, except as otherwise approved in writing by us, which approval may be withheld or denied in our sole and absolute discretion, neither you nor any of the Principal(s) shall, either directly or indirectly, for themselves or through, on behalf of or in conjunction with any person(s), partnership or corporation:
(a) Divert, or attempt to divert, any business or customer of the Franchised Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any bb.q Chicken franchisees or Franchisor-affiliated outlets.
(b) Own, maintain, operate, engage in, or have any financial or beneficial interest in (including any interest in corporations, partnerships, trusts, unincorporated associations or joint ventures), advise, assist or make loans to, any business located within the United States, its territories, states or commonwealths, or any other country, province, state or geographic area in which we have used, sought registration of or registered the same or similar Marks or operates or licenses others to operate a business under the same or similar Marks, which business is of a character and concept similar to the Franchised Business, including a food service business which offers and sells the same or similar food products (a "Competitive Business").
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, the consideration for the Confidentiality and Non-Competition Agreement includes specialized training, trade secrets, and confidential information provided to the franchisee, principals, managers, and employees. This information encompasses operational, sales, promotional, and marketing methods and techniques of Bb.Q Chicken and its system, which are beyond the present skills and experience of the franchisee and their personnel.
In exchange for this specialized training and access to confidential information, the franchisee and principals agree to certain covenants during the term of the Franchise Agreement. They are prohibited from diverting business or customers to competitors, engaging in activities injurious to the goodwill associated with the Bb.Q Chicken brand, or interfering with the business of the franchisor or other Bb.Q Chicken franchisees.
Furthermore, franchisees and principals are restricted from owning, operating, or having a financial interest in any Competitive Business within the United States or any other area where Bb.Q Chicken has used or registered similar marks. This includes food service businesses offering similar food products. This non-compete obligation is designed to protect Bb.Q Chicken's market position and proprietary information.