Is a Potential Franchisee evaluating a Chicken Guy franchise allowed to disclose Confidential Information to Chicken Guy's competitors?

According to the 2025 Chicken Guy Franchise Disclosure Document, a potential franchisee evaluating a Chicken Guy franchise is explicitly prohibited from disclosing confidential information to Chicken Guy's competitors. The document emphasizes that as a potential franchisee, one occupies a position of trust and confidence, making it necessary to protect the confidentiality of the information provided. This restriction is in place while the Potential Franchisee Agreement is in effect.

The agreement specifies that confidential information should only be shared with the potential franchisee's attorney, accountant, or other representatives as needed to evaluate the franchise opportunity. Even then, the potential franchisee is responsible for ensuring these representatives protect the information from unauthorized disclosure, using at least a reasonable degree of care. The potential franchisee must have procedures in place to ensure their representatives are aware of their confidentiality obligations.

This strict confidentiality requirement is typical in franchising, as franchisors like Chicken Guy need to protect their proprietary systems, operational methods, and business strategies. Unauthorized disclosure to competitors could significantly harm Chicken Guy's competitive advantage and market position. The FDD makes it clear that disclosing confidential information to competitors is a breach of the agreement.