What must a Chicken Guy franchisee do to ensure its employees keep confidential Chicken Guy's trade secrets and confidential information?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Franchisee 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 Franchisee regarding the System is disclosed in confidence; (e) Franchisee has no right to disclose any part of the System to anyone who is not an employee of Franchisee; (f) Franchisee will disclose to its employees only those parts of the System that an employee needs to know; (g) Franchisee 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, Franchisee shall obtain from those of its employees designated by Chicken Guy an executed Confidential Disclosure Agreement in the form prescribed by Chicken Guy; (h) Franchisee will not acquire any interest in the System; and (i) Franchisee'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 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees must implement a system to ensure their employees maintain the confidentiality of Chicken Guy's trade secrets and proprietary information. This includes disclosing only necessary parts of the system to employees. If requested by Chicken Guy, the franchisee must obtain executed Confidential Disclosure Agreements from designated employees, using a form prescribed by Chicken Guy.
This requirement highlights the importance Chicken Guy places on protecting its intellectual property and operational methods. Franchisees are responsible for actively managing and safeguarding this information within their workforce. The obligation to use a prescribed Confidential Disclosure Agreement ensures uniformity and legal protection for the franchisor.
For a prospective franchisee, this means understanding the need to create and maintain a robust confidentiality system. Budgeting for the administrative costs of implementing and monitoring this system is essential. Additionally, franchisees should be prepared to address employee questions or concerns about signing confidentiality agreements, ensuring they understand the importance of protecting Chicken Guy's proprietary information.