Does the Chicken Guy franchise agreement allow a franchisee to communicate or disclose any trade secrets or confidential information of the System after the termination of the agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Franchisee shall not, during the term of this Agreement or at any time thereafter, communicate or disclose any trade secrets or confidential or proprietary information or know-how of the System to any unauthorized person, or do or perform, directly or indirectly, any other acts injurious or prejudicial to any of the Proprietary Marks or the System. Any and all information, knowledge, know-how and techniques, including all drawings, materials, equipment, specifications, recipes, techniques and other data that Chicken Guy or its affiliates designate as confidential, shall be deemed confidential for purposes of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, franchisees are prohibited from communicating or disclosing any trade secrets or confidential information of the System at any time, including after the termination of the franchise agreement. The franchise agreement states that franchisees acknowledge the Chicken Guy System consists of trade secrets and confidential information that gives Chicken Guy a competitive advantage. Franchisees must ensure their employees also keep this information confidential.
This obligation extends beyond the agreement's term, meaning that even after a franchisee's relationship with Chicken Guy ends, they are still legally bound to protect the confidentiality of the System's trade secrets and proprietary information. This restriction is typical in franchising to protect the brand's competitive edge and proprietary methods.
Failure to comply with this confidentiality clause could result in legal action from Chicken Guy, including injunctive relief, without needing to post a bond. This means Chicken Guy could seek a court order to immediately stop the franchisee from disclosing confidential information, in addition to any other legal remedies available.