Is a Potential Franchisee allowed to disclose Chicken Guy's confidential operating procedures and standards?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Potential Franchisee shall not disclose the Confidential Information to any person or entity other than Potential Franchisee's attorney, accountant or other representatives as necessary to evaluate the opportunity provided by Chicken Guy and agree to protect the Confidential Information against unauthorized disclosure using the same degree of care, but no less than a reasonable degree of care, as Potential Franchisee uses to protect Potential Franchisee's confidential information.
Without in any way limiting the generality of Potential Franchisee's obligations under this Agreement, Potential Franchisee acknowledges and agrees that in no event will Potential Franchisee disclose any of the Confidential Information to any of Chicken Guy's competitors.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, a potential franchisee is restricted from disclosing confidential information. The agreement specifies that potential franchisees can only use confidential information to evaluate the franchise opportunity. They are explicitly prohibited from disclosing this information to any person or entity, except their attorney, accountant, or other representatives, as necessary for the evaluation. Even with these representatives, the potential franchisee must ensure the information is protected against unauthorized disclosure, using at least a reasonable degree of care.
Chicken Guy defines confidential information broadly, including the Operations Manual, trade secrets, know-how, methodologies, processes, formulas, specifications, system information, operating procedures and standards, technical information, statistics, software, hardware, materials, plans, designs, schematics, reports, studies, notes, analyses, summaries, business, market and development plans and programs, financial information and projections, and information regarding the retail and commercial operations of Chicken Guy and its affiliates. This information is considered confidential if it derives independent economic value from not being generally known, is subject to reasonable efforts to maintain its secrecy, or is designated as confidential by Chicken Guy.
The agreement emphasizes that potential franchisees occupy a position of trust and confidence and must not disclose confidential information to Chicken Guy's competitors. If a potential franchisee decides not to purchase a franchise, or if Chicken Guy decides not to offer one, the potential franchisee must immediately cease using the confidential information and return or destroy it, including all copies. They may also be required to certify in writing that they have complied with these requirements. Violating this agreement could result in injunctive relief, preventing further disclosure, in addition to any other legal remedies available to Chicken Guy.