What is the purpose of 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 FDD, the Confidentiality and Non-Competition Agreement for Bb.Q Chicken franchisees and their employees and managers is in place to protect Bb.Q Chicken's specialized training, trade secrets, and confidential information. This includes operational, sales, promotional, and marketing methods and techniques that Bb.Q Chicken considers beyond the present skills and experience of the franchisee, their managers, and employees. The agreement ensures that the franchisee and their team do not use this information to harm the Bb.Q Chicken system.
The agreement specifically prevents the franchisee and their principals from diverting business or customers to competitors, or from performing any actions that could harm the goodwill associated with Bb.Q Chicken's marks and system. It also restricts them from owning, operating, or having a financial interest in any business that is similar to Bb.Q Chicken within the United States or any other area where Bb.Q Chicken uses or has registered similar marks. This includes any food service business that offers similar food products.
This non-compete provision applies during the term of the Franchise Agreement. This is a fairly standard practice in franchising, as franchisors need to protect their brand and proprietary information. Prospective Bb.Q Chicken franchisees should carefully review the terms of the Confidentiality and Non-Competition Agreement to understand the full scope of these restrictions and how they might impact their future business activities.