What remedies is Chicken Guy entitled to in the event of a violation of the confidentiality agreement by a potential franchisee?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Injunctive Relief. Potential Franchisee understands that any violation of this Agreement will cause Chicken Guy immediate and irreparable harm which money damages cannot adequately remedy. Therefore, upon any actual or impending violation of this Agreement, Potential Franchisee hereby consents to issuance by the federal or state court having jurisdiction where Chicken Guy's principal offices are located or, at Chicken Guy's election, any other court that may, assume jurisdiction, of any restraining order, preliminary and/or permanent injunction, without bond, restraining or enjoining such violation by Potential Franchisee or any entity or person acting in concert with Potential Franchisee. Potential Franchisee understands that such orders are additional to and do not limit the availability of any other remedy.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, Chicken Guy can pursue several remedies if a potential franchisee violates the confidentiality agreement. Chicken Guy can seek a restraining order, preliminary and/or permanent injunction against the potential franchisee in federal or state court, without needing to post a bond. This allows Chicken Guy to immediately stop the potential franchisee from further disclosing or misusing confidential information. These remedies do not limit any other options available to Chicken Guy.
Chicken Guy emphasizes that any breach of the confidentiality agreement would cause immediate and irreparable harm that monetary damages alone cannot fix. This underscores the importance Chicken Guy places on protecting its confidential information and trade secrets. The agreement ensures that potential franchisees understand the sensitive nature of the information they receive and the serious consequences of violating the agreement.
This is a fairly standard clause in franchise agreements, as franchisors need to protect their proprietary information. Prospective Chicken Guy franchisees should carefully review the confidentiality agreement and understand their obligations to protect Chicken Guy's confidential information. They should also be aware of the potential legal consequences of violating the agreement, including the possibility of injunctive relief.