What is a Churchs Chicken franchisee required to do to ensure their employees maintain the confidentiality of Cajun's trade secrets and proprietary information?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
natural disaster, Franchisee shall repair, reconstruct, and reopen the Franchised Restaurant as soon as reasonably possible. If Cajun or Franchisee reasonably believes such repairs or reconstruction cannot be completed within 180 days after the event, Franchisee shall have 30 days after the event in which to apply for Cajun's approval to relocate and/or reconstruct the premises, which approval shall not be unreasonably withheld, but may be conditioned upon the payment of a minimum royalty fee to Cajun during the period in which the Franchised Restaurant is not in operation. The minimum royalty will be calculated as the average weekly royalty that Franchisee owed to Cajun during the 52 weeks before the closure of the Restaurant (or any such lesser period if the Restaurant was not open 52 weeks) multiplied by the number of weeks or partial weeks that the Restaurant is not in operation.
B. Best Efforts. Franchisee and the Operating Principal shall devote their best efforts to the development, management and operation of the Franchised Restaurant.
C. Confidentiality
- (1) Franchisee acknowledges and agrees that: (a) Cajun owns all right, title and interest in and to the System; (b) the System consists of trade secrets and confidential and proprietary information and know-how (including, but not limited to, drawings, materials, equipment, recipes, prepared mixtures or blends of spices or other food products and other data which Cajun deems confidential) that gives Cajun and its affiliates a competitive advantage; (c) Cajun and its affiliates have taken all measures necessary to protect the trade secrets and the confidentiality of the proprietary information and know-how comprising the System; (d) all material or other information now or hereafter provided or disclosed to Franchisee regarding the System is disclosed in confidence; (e) Franchisee has no right to disclose any part of the System to anyone who is not an employee of Franchisee; (f) Franchisee will disclose to its employees only those parts of the System that an employee needs to know; (g) Franchisee will have a system in place to ensure its employees keep confidential Cajun's trade secrets and confidential and proprietary information, and if requested by Cajun, Franchisee shall obtain from those of its employees designated by Cajun an executed Confidentiality and Non-Disclosure Agreement in the form approved by Cajun; (h) Franchisee will not acquire any interest in the System; and (i) Franchisee's use or duplication of the System or any part of the System in any other business would constitute an unfair method of competition for which Cajun would be entitled to all legal and equitable remedies, including injunctive relief, without posting a bond.
- (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.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, franchisees must implement a system to ensure their employees keep Cajun's trade secrets and confidential information private. Franchisees are only allowed to disclose to their employees the parts of the Churchs Chicken system that an employee needs to know. If requested by Cajun, the franchisee must obtain a signed Confidentiality and Non-Disclosure Agreement, in a form approved by Cajun, from designated employees.
Churchs Chicken franchisees are required, at Cajun's request, to have their supervisory employees sign an agreement that prohibits them from disclosing or using any confidential information, trade secrets, knowledge, or know-how concerning the Churchs Chicken system or methods of operation, both during and after their employment. Franchisees must provide Cajun with a copy of this agreement once it is executed.
In addition to these measures, franchisees must ensure their employees act in a manner that meets the standards of the Churchs Chicken system. Franchisees must also ensure that the contents of the operations manual, including any passwords or digital identifications needed to access it, are kept confidential and only disclosed to employees who need to know the information. Franchisees cannot copy or reproduce any part of the manual.
These confidentiality measures are typical in franchising, as franchisors like Churchs Chicken need to protect their proprietary systems and trade secrets. The agreements help to legally bind employees to maintain confidentiality, and the restrictions on disclosing information and copying the manual further safeguard the franchisor's intellectual property.