What information about the Chicken Guy system can I disclose to my employees?
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.
- (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 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 38–39)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, franchisees have a responsibility to protect the confidentiality of the Chicken Guy system, which includes trade secrets and proprietary information. Franchisees are permitted to disclose only the necessary parts of the system to their employees. This means franchisees must carefully consider what information each employee needs to know to perform their job effectively, and avoid sharing any information beyond that scope.
Chicken Guy requires franchisees to implement a system that ensures employees maintain the confidentiality of the brand's trade secrets and proprietary information. If requested by Chicken Guy, franchisees must obtain a signed Confidential Disclosure Agreement from designated employees, using a form prescribed by Chicken Guy. This agreement would likely outline the specific information considered confidential and the employee's obligations to protect it.
Franchisees are prohibited from disclosing trade secrets or confidential information to unauthorized individuals during the term of the Franchise Agreement and afterward. This obligation extends to all information, knowledge, know-how, and techniques designated as confidential by Chicken Guy, including drawings, materials, equipment, specifications, recipes, and other data. Unauthorized disclosure or any action that harms the Proprietary Marks or the Chicken Guy system could result in legal and equitable remedies, including injunctive relief, without the need for Chicken Guy to post a bond.