What is the Potential Franchisee's obligation regarding third parties to whom they disclosed Chicken Guy's Confidential Information?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Return and/or Destruction of Confidential Information.** If, at any time, Chicken Guy determines that it does not wish for Potential Franchisee to purchase a Franchise or Potential Franchisee determines that it does not wish to purchase a Franchise, or if Chicken Guy requests, at any time and for any reason, that Potential Franchisee do so, Potential Franchisee agrees to: (1) immediately cease to use the Confidential Information; (2) immediately return, or destroy the Confidential Information and all copies thereof (whether or not such copies were authorized) and cause any third party to whom disclosure was made to do the same; and (3) at the request of Chicken Guy, certify in writing that Potential Franchisee and all others to whom Potential Franchisee has provided such Confidential Information, have complied with subsections (1) and (2) above.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a potential franchisee has specific obligations regarding third parties to whom they've disclosed confidential information. If Chicken Guy determines it does not wish the potential franchisee to purchase a franchise, or if the potential franchisee decides against purchasing a franchise, or if Chicken Guy requests it at any time for any reason, the potential franchisee must ensure that any third parties to whom they disclosed confidential information also cease using the information and either return or destroy it and all copies.
This obligation extends to the potential franchisee's attorney, accountant, or other representatives who were given access to the confidential information to evaluate the Chicken Guy franchise opportunity. The potential franchisee is responsible for ensuring these parties are aware of and comply with the confidentiality obligations. This includes taking steps to protect the information against unauthorized disclosure, use, copying, or transfer, using at least a reasonable degree of care.
Furthermore, at Chicken Guy's request, the potential franchisee must certify in writing that they and all third parties to whom they provided confidential information have complied with the requirements to cease use, return, or destroy the information. This places a significant responsibility on the potential franchisee to manage and control the flow of confidential information to third parties and to ensure their compliance with Chicken Guy's confidentiality requirements.
Failure to comply with these obligations could result in legal action, as Chicken Guy views any violation of the agreement as causing immediate and irreparable harm that money damages cannot adequately remedy. Chicken Guy is entitled to seek injunctive relief, without bond, to restrain any violation of the agreement by the potential franchisee or any party acting in concert with them.