What is the Browns Chicken franchisee prohibited from doing with the Confidential Information?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ot acquire any interest in the Confidential Information, other than the right to utilize it in the operation of the Store and that the use or duplication of the Confidential Information in any other business would constitute an unfair method of competition with Brown and other BROWN'S franchises.
- 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;
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, franchisees are strictly limited in how they can use Browns Chicken's Confidential Information. Browns Chicken considers its Confidential Information a valuable asset that includes trade secrets. Franchisees acknowledge that they will not acquire any interest in the Confidential Information, other than the right to utilize it in the operation of the Store.
Specifically, franchisees are prohibited from using the Confidential Information in any business or capacity other than operating their Browns Chicken store. They must maintain the absolute secrecy and confidentiality of the Confidential Information both during and after the term of the Franchise Agreement. Unauthorized copying of any written Confidential Information is also forbidden.
To safeguard this information, Browns Chicken franchisees must implement reasonable procedures to prevent unauthorized use or disclosure. This includes restricting disclosure to employees and using Browns Chicken's standard non-disclosure and non-competition clauses in employment agreements with employees who have access to the Confidential Information. These obligations regarding Confidential Information survive even after the termination or expiration of the Franchise Agreement.