Are disputes involving actual or threatened disclosure or misuse of the contents of the Manual or any other confidential information or trade secrets of Chicken Guy subject to mediation and arbitration?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, Franchisee agrees that, in the event of a breach or threatened breach of any of the terms of this Agreement by Franchisee, Chicken Guy shall be entitled to injunctive relief (preliminary and permanent) restraining that breach and/or temporary restraining orders and/or to specific performance from a court of competent jurisdiction without showing or proving actual damages and without posting any bond or security; provided, however, that Chicken Guy and Franchisee must contemporaneously submit the disputes for non-binding mediation under Section 31.A. and then for arbitration under Section 31.B. on the merits as provided herein if such disputes cannot be resolved through mediation.
Franchisee acknowledges that a proper case to obtain temporary restraining orders and preliminary or permanent injunctive relief from a court of competent jurisdiction contemporaneously with submitting the disputes to mediation and then to arbitration shall include, but not be limited to, the following: (1) any dispute involving actual or threatened disclosure or misuse of the contents of the Manual or any other confidential information or trade secrets of Chicken Guy; (2) any dispute involving the ownership, validity, use of, or right to use or license the Proprietary Marks; (3) any action by Chicken Guy to enforce post-termination obligations; and (4) any action by Chicken Guy to stop or prevent any threat or danger to public health or safety resulting from the construction, maintenance, or operation of the Franchised Restaurant.
Any equitable remedies sought by Chicken Guy shall be in addition to, and not in lieu of, all remedies and rights that Chicken Guy otherwise may have arising under applicable law or by virtue of any breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, disputes involving the actual or threatened disclosure or misuse of the contents of the Manual or any other confidential information or trade secrets are subject to both non-binding mediation and arbitration. Specifically, Chicken Guy is entitled to seek injunctive relief from a court of competent jurisdiction, including temporary restraining orders and preliminary or permanent injunctions, contemporaneously with submitting the disputes to mediation and then to arbitration. This means Chicken Guy can take immediate legal action to prevent the disclosure or misuse of confidential information while also pursuing mediation and arbitration.
The FDD outlines that a proper case for obtaining such injunctive relief includes disputes involving the actual or threatened disclosure or misuse of the Manual's contents or any other confidential information or trade secrets. This indicates the importance Chicken Guy places on protecting its proprietary information and the steps it can take to enforce confidentiality.
For a prospective franchisee, this means that any breach or threatened breach of confidentiality could lead to immediate legal action by Chicken Guy. However, the franchisee would also have the opportunity to resolve the dispute through mediation and arbitration. This process ensures that while Chicken Guy can act quickly to protect its interests, the franchisee also has avenues for dispute resolution.
It's important to note that any equitable remedies sought by Chicken Guy are in addition to, and not in lieu of, all other remedies and rights available under applicable law or the franchise agreement. This reinforces Chicken Guy's ability to pursue multiple avenues of recourse in the event of a breach of contract or confidentiality.