For Churchs Chicken, what is the duration of the restriction on communicating or disclosing trade secrets after the Development Term?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Guarantor shall not, during the Development Term or for a period of two years thereafter (or, with respect to trade secrets, at any time during or after the Development Term), 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. Any and all information, knowledge, know how and techniques, including all drawings, materials, equipment, specifications, recipes, techniques and other data that Cajun or its affiliates designate as confidential shall be deemed confidential for purposes of this Guaranty.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the restriction on communicating or disclosing trade secrets extends indefinitely beyond the Development Term. Specifically, the franchisee is prohibited from communicating or disclosing any trade secrets or confidential information at any time during or after the Development Term. This restriction is in place to protect Churchs Chicken's proprietary information and know-how.
This means that even after the Development Term concludes, a Churchs Chicken developer remains legally obligated to safeguard the brand's trade secrets. This obligation has no time limit, unlike some other restrictions that may expire after a set period. The definition of trade secrets is broad, encompassing any information, knowledge, know-how, drawings, materials, equipment, specifications, recipes, and techniques that Churchs Chicken designates as confidential.
For a prospective Churchs Chicken developer, this indefinite restriction highlights the importance of understanding and respecting the confidentiality of the brand's operational methods and proprietary information. Any unauthorized disclosure could result in legal action from Churchs Chicken. This is a standard practice in franchising, as franchisors heavily rely on trade secrets to maintain a competitive advantage and protect their brand identity.