To what confidential information disclosed by Chicken Guy does the confidentiality agreement apply?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
1. Confidential Information
- **A.
Definition of Confidential Information.** As used in this Agreement, the term "Confidential Information" means all information about Chicken Guy or its affairs that Chicken Guy or its representatives furnish to Potential Franchisee.
Confidential Information includes, but is not limited to, Chicken Guy's confidential and proprietary Operations Manual, or any portion of its contents, trade-secrets, know-how, methodologies, processes, formulas, specifications, Chicken Guy! restaurant system information, operating procedures and standards, technical information, statistics, software, hardware, materials, plans, designs, schematics, reports, studies, notes, analyses, summaries, business, market and development plans and programs, financial information and projections, information regarding the retail and commercial operations of Chicken Guy and its affiliates, and all information that: (1) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; (2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy; or (3) is designated by Chicken Guy as confidential or proprietary.
Confidential Information may be in written form or obtained orally.
As used in this Agreement, the term "representatives" of a party shall include the directors, officers, employees, shareholders or other securities holders, partners, members, trustees, agents, lenders, advisors, subsidiaries and other foreign and domestic affiliates and/or related entities of a party.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the confidentiality agreement applies to all information about Chicken Guy or its affairs that Chicken Guy or its representatives furnish to a potential franchisee. This includes, but is not limited to, the confidential and proprietary Operations Manual, trade secrets, know-how, methodologies, processes, formulas, specifications, restaurant system information, operating procedures and standards, technical information, statistics, software, hardware, materials, plans, designs, schematics, reports, studies, notes, analyses, summaries, business, market and development plans and programs, financial information and projections, and information regarding the retail and commercial operations of Chicken Guy and its affiliates.
The agreement covers information that derives independent economic value from not being generally known and is subject to reasonable efforts to maintain its secrecy, or is designated by Chicken Guy as confidential or proprietary. The confidential information can be in written form or obtained orally.
This means that a prospective Chicken Guy franchisee must treat all disclosed information with utmost care and confidentiality. They can only use the information to evaluate the franchise opportunity and must not disclose it to unauthorized parties, including competitors. The franchisee is responsible for ensuring their representatives (attorneys, accountants, etc.) also maintain confidentiality. Failure to comply with these confidentiality obligations could result in legal action, including injunctive relief, as any violation is recognized to cause immediate and irreparable harm to Chicken Guy.