Under what conditions must a Churchs Chicken franchisee obtain signed Confidentiality and Non-Disclosure Agreements from employees?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
You must have a system in place to ensure your employees keep confidential our trade secrets and confidential and proprietary information, and, if we request, you must obtain from those employees we designate a signed Confidentiality and Non-Disclosure Agreement in the form we approve.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 47–49)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees must have a system in place to ensure their employees keep the franchisor's trade secrets and confidential information private. Specifically, Churchs Chicken may request that franchisees obtain signed Confidentiality and Non-Disclosure Agreements from those employees that Churchs Chicken designates. The agreement must be in a form approved by Churchs Chicken.
This requirement ensures that sensitive information, such as food formulas, recipes, preparation methods, equipment standards, operating procedures, training programs, management programs, and architectural standards, remains protected. These details are crucial to the Churchs Chicken system and its brand identity. Unauthorized disclosure could harm the company's competitive advantage and the consistency of its operations.
For a prospective franchisee, this means being prepared to implement a confidentiality system and potentially requiring employees to sign legal agreements. The franchisee should clarify with Churchs Chicken which specific employees would need to sign these agreements and what the approved form looks like. This will help in budgeting for legal review and administrative costs associated with implementing and maintaining these confidentiality measures.