To whom are Bb.Q Chicken franchisees permitted to divulge confidential information?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
You and the Principal(s) shall not divulge and make any Confidential Information available to anyone other than those of Franchisee's employees who require the Confidential Information to operate the Franchised Business and who have themselves entered into confidentiality and non-compete agreements containing the same provisions as contained in this Agreement, in accordance with 10.2.2 hereof. You and the Principal(s) shall not at any time copy, duplicate, record or otherwise reproduce any Confidential Information, in whole or in part, or otherwise make the same available to any person other than those authorized above, without Franchisor's prior written consent. The covenants in this Section 19.2 shall survive the expiration, termination or transfer of this Agreement or any interest herein and shall be perpetually binding upon Franchisee and each Principal.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 46–47)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, franchisees and their principals are restricted from sharing confidential information with external parties. However, they are permitted to share this information with their employees who need it to operate the franchised business, provided these employees have signed confidentiality and non-compete agreements with terms equivalent to those in the franchise agreement. This obligation extends both during and after the term of the franchise agreement. Franchisees must obtain written consent from Bb.Q Chicken before copying, duplicating, recording, or reproducing any confidential information.
This policy ensures that Bb.Q Chicken's trade secrets and operational methods remain protected within the franchise system. The definition of confidential information is broad, encompassing recipes, methods, customer lists, financial data, and any other information, whether or not specifically designated as confidential. This places a significant responsibility on the franchisee to manage and protect this information carefully.
The requirement for employees to sign confidentiality agreements is a standard practice in franchising to safeguard proprietary information. These agreements must mirror the confidentiality and non-compete provisions in the franchise agreement, ensuring consistent protection across the entire Bb.Q Chicken network. The franchisor's control over who receives confidential information and the stipulation of prior written consent for reproduction further emphasize the importance of maintaining secrecy and preventing unauthorized use of Bb.Q Chicken's intellectual property.
This clause is perpetually binding, meaning that even after the franchise agreement expires or is terminated, the franchisee and their principals remain obligated to protect the confidential information. This long-term restriction is common in franchise agreements to prevent former franchisees from using the franchisor's trade secrets to compete against the system. Prospective franchisees should carefully review these confidentiality obligations to understand the scope of information covered and the restrictions on its use and disclosure.