Can a Browns Chicken franchisee use the Confidential Information in any other business or capacity?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Brown will disclose the Confidential Information to Franchisee during training, in the Operating Manual and in guidance and assistance furnished to Franchisee during the term of the Franchise. Franchisee acknowledges and agrees that he will not 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; 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 using the Confidential Information provided by Browns Chicken in any business or capacity other than the operation of their Browns Chicken franchise. The Confidential Information includes recipes, methods for preparing food, marketing programs, and training methods. Browns Chicken discloses this information to the franchisee during training and within the operating manual.
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 their Browns Chicken store. The franchise agreement specifies that using or duplicating this information in any other business would be considered unfair competition against Browns Chicken and its other franchisees.
To ensure the protection of this information, Browns Chicken requires franchisees to maintain absolute secrecy and confidentiality both during and after the franchise term. Franchisees must also avoid making unauthorized copies of any written Confidential Information and must implement procedures to prevent unauthorized use or disclosure, including using non-disclosure agreements with employees who have access to the information. Franchisees must also notify Browns Chicken of the names and addresses of all affiliates, officers, directors, partners, supervisory employees, and owners and keep this information updated.