What actions by a Churchs Chicken franchisee regarding the System would be considered an unfair method of competition, entitling Cajun to legal remedies?

According to the 2025 Churchs Chicken Franchise Disclosure Document, if a franchisee uses or duplicates the Churchs Chicken System or any part of it in any other business, it would be considered an unfair method of competition. In such a case, Cajun, the franchisor, would be entitled to all legal and equitable remedies. These remedies include injunctive relief, which can be pursued without Cajun needing to post a bond.

The Churchs Chicken System is defined as consisting of trade secrets, confidential, and proprietary information and know-how. This includes, but is not limited to, drawings, materials, equipment, recipes, prepared mixtures or blends of spices or other food products, and other data that Cajun deems confidential. Cajun takes measures to protect these trade secrets and the confidentiality of its proprietary information.

This clause emphasizes the importance of maintaining the confidentiality of the Churchs Chicken System. It prevents franchisees from leveraging the franchisor's proprietary information and methods to benefit other ventures, ensuring that the competitive advantage established by Churchs Chicken remains protected. This is a standard practice in franchising, as franchisors invest heavily in developing their systems and brand recognition.