Can a Browns Chicken franchisee make unauthorized copies of the Confidential Information?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Franchisee acknowledges and agrees that the Confidential Information is a valuable asset of Brown, includes trade secrets of Brown and is disclosed to Franchisee solely on the condition that Franchisee agrees, and Franchisee does hereby agree, that he: (1) will not use the Confidential Information in any other business or capacity; (2) will maintain the absolute secrecy and confidentiality of the Confidential Information during and after the term of this Agreement; (3) will not make unauthorized copies of any portion of the Confidential Information disclosed in written form; and (4) will adopt and implement all reasonable procedures prescribed from time to time by Brown to prevent unauthorized use or disclosure of the Confidential Information, including without limitation, restrictions on disclosure thereof to employees of Franchisee, and the use of Brown's customary non-disclosure and/or non-competition clauses in employment agreements with employees who have access to the Confidential Information.
In connection with this obligation, Franchisee shall notify Brown of the name and address of each affiliate, officer, director, partner, supervisory employee and owner of Franchisee and shall update such information whenever necessary.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from making unauthorized copies of any portion of the Confidential Information disclosed in written form. The Confidential Information includes recipes, methods, techniques, procedures for preparing food products, marketing programs, and training methods. Browns Chicken discloses this information to franchisees during training, in the Operating Manual, and through ongoing guidance.
Browns Chicken emphasizes that the Confidential Information is a valuable asset and includes trade secrets. Franchisees acknowledge that they only have the right to use this information for operating their Browns Chicken store. Any use or duplication of the Confidential Information in another business would be considered unfair competition against Browns Chicken and its other franchisees.
To protect this information, Browns Chicken requires franchisees to maintain absolute secrecy and confidentiality during and after the franchise agreement. Franchisees must also implement reasonable procedures to prevent unauthorized use or disclosure, including restricting disclosure to employees and using non-disclosure agreements with employees who have access to the Confidential Information. Franchisees must also notify Browns Chicken of the names and addresses of affiliates, officers, directors, partners, supervisory employees, and owners, updating this information as necessary.