Is a Chicken Guy developer allowed to disclose any part of the Chicken Guy System to someone who is not an employee?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Confidentiality.
- (1) Developer acknowledges and agrees that: (a) Chicken Guy owns all right, title and interest in and to the System; (b) the System consists of trade secrets and confidential and proprietary information and know-how that gives Chicken Guy and its affiliates a competitive advantage; (c) Chicken Guy and its affiliates have taken all measures necessary to protect the trade secrets and the confidentiality of the proprietary information and know-how comprising the System; (d) all material or other information now or hereafter provided or disclosed to Developer regarding the System is disclosed in confidence; (e) Developer has no right to disclose any part of the System to anyone who is not an employee of Developer; (f) Developer will disclose to its employees only those parts of the System that an employee needs to know; (g) Developer will have a system in place to ensure its employees keep confidential Chicken Guy's trade secrets and confidential and proprietary information, and, if requested by Chicken Guy, Developer shall obtain from those of its employees designated by Chicken Guy an executed Confidential Disclosure Agreement in the form prescribed by Chicken Guy; (h) Developer will not acquire any interest in the System; and (i) Developer's use or duplication of the System or any part of the System in any other business would constitute an unfair method of competition, for which Chicken Guy would be entitled to all legal and equitable remedies, including injunctive relief, without posting a bond.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a developer is restricted from disclosing any part of the Chicken Guy System to individuals who are not their employees. The FDD emphasizes that Chicken Guy owns all rights to the System, which includes trade secrets, confidential information, and proprietary know-how that provides a competitive advantage.
The agreement specifies that all information provided to the developer regarding the System is disclosed in confidence. Developers are only permitted to disclose parts of the System to their employees who need to know the information to perform their duties. Furthermore, developers must implement a system to ensure their employees maintain the confidentiality of Chicken Guy's trade secrets and proprietary information. Chicken Guy may also require developers to obtain signed Confidential Disclosure Agreements from designated employees.
These confidentiality measures are designed to protect Chicken Guy's System from unauthorized use or duplication, which would constitute unfair competition. The franchisor retains the right to seek legal remedies, including injunctive relief, to prevent any unauthorized disclosure or use of the System. This underscores the importance of maintaining strict confidentiality and limiting access to the System only to authorized personnel within the developer's organization.