What is the duration of the restriction preventing a Churchs Chicken franchisee from disclosing trade secrets or confidential information after the Initial Term or any Renewal Term?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Franchisee shall not, during the Initial Term, any Renewal Term or for a period of two years thereafter (or with respect to trade secrets, during the Initial Term, any Renewal 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 acts injurious 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 Agreement.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, a franchisee is restricted from disclosing trade secrets or confidential information indefinitely. Specifically, during the Initial Term, any Renewal Term, or at any time thereafter, a franchisee cannot communicate or disclose any trade secrets or confidential or proprietary information or know-how of the Churchs Chicken system to any unauthorized person or entity.
This perpetual restriction on trade secret disclosure is a standard practice in franchising to protect the franchisor's intellectual property and operational methods. The FDD also states that 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 the Franchise Agreement.
For a prospective Churchs Chicken franchisee, this means that the obligation to maintain confidentiality regarding trade secrets extends beyond the term of the franchise agreement. Even after the franchise relationship ends, the franchisee is legally bound to not disclose any confidential information or trade secrets learned during their time as a franchisee. This is a significant and ongoing responsibility that must be taken seriously.