For Churchs Chicken, what is the duration after the Development Term during which a developer is prohibited from communicating or disclosing trade secrets or confidential information of the System?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Developer shall not, during the Development Term or for a period of two years thereafter (or, with respect to trade secrets, during the Development Term or any time thereafter), communicate or disclose any trade secrets or confidential or proprietary information or know-how of the System to any unauthorized person or entity, or do or perform, directly or indirectly, any other actsinjurious or prejudicial to any of the Proprietary Marks or the System.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a developer is restricted from disclosing trade secrets or confidential information of the Churchs Chicken system both during the Development Term and at any time after the Development Term concludes. This means the restriction related to trade secrets has no fixed expiration date.
For confidential or proprietary information that is not considered a trade secret, the developer is prohibited from communicating or disclosing it for a period of two years after the Development Term. This includes any know-how of the Churchs Chicken system to any unauthorized person or entity. Additionally, the developer cannot perform any actions that could be harmful or prejudicial to the Proprietary Marks or the Churchs Chicken system during this time.
This perpetual restriction on trade secrets is a common practice in franchising to protect the franchisor's intellectual property and competitive advantage. Prospective Churchs Chicken developers should fully understand the scope of what Churchs Chicken considers to be trade secrets and confidential information, as these obligations continue indefinitely. Developers should also be aware of the implications of violating these confidentiality clauses, which could lead to legal action from Churchs Chicken.