Besides operating the Hck Hot Chicken business, can I use the Know-how in any other business or capacity?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree: (i) you will not use the Know-how in any business or capacity other than the HCK Hot Chicken business operated by Franchisee; (ii) you will maintain the confidentiality of the Know-how at all times; (iii) you will not make unauthorized copies of documents containing any Know-how; (iv) you will take such reasonable steps as we may ask of you from time to time to prevent unauthorized use or disclosure of the Know-how; and (v) you will stop using the Know-how immediately if you are no longer a manager or officer of Franchisee's HCK Hot Chicken business.
You further agree that you will not use all or part of the Intellectual Property or all or part of the System for any purpose other than the performance of your duties for Franchisee and within the scope of your employment or other engagement with Franchisee.
These restrictions on Know-how, Intellectual Property and the System shall not apply to any information which is information publicly known or becomes lawfully known in the public domain other than through a breach of this Agreement or is required or compelled by law to be disclosed, provided that you will give reasonable notice to us to allow us to seek protective or other court orders.
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, if you are a manager or officer of the Franchisee, you are restricted from using the Know-how in any business or capacity other than the Hck Hot Chicken business operated by the Franchisee. This restriction is in place to protect Hck Hot Chicken's trade secrets and proprietary information, which are crucial to the success of the franchise system. The FDD defines Know-how as all of Hck Hot Chicken's trade secrets and other proprietary information relating to the development, construction, marketing, and/or operation of a Hck Hot Chicken business, including, but not limited to, methods, techniques, specifications, proprietary practices and procedures, policies, marketing strategies, and information comprising the System and the Manual.
This restriction extends to the use of Intellectual Property, which includes Marks, Copyrights, Know-how, Manual, and System. You are not allowed to use the Intellectual Property for any purpose other than performing your duties for the Franchisee and within the scope of your employment or engagement with the Franchisee. The agreement also states that you must maintain the confidentiality of the Know-how and Intellectual Property at all times and take reasonable steps to prevent unauthorized use or disclosure. These restrictions do not apply to information that is publicly known or becomes lawfully known in the public domain without breaching the agreement, or if disclosure is required by law, provided that Hck Hot Chicken is given reasonable notice to seek protective orders.
These restrictions on using the Know-how and Intellectual Property are designed to prevent unfair competition during and after your relationship with the Hck Hot Chicken franchise. During your time as a manager or officer, you are prohibited from engaging in any Prohibited Activities that would unfairly compete with Hck Hot Chicken. After the relationship ends, these restrictions continue for a Restricted Period, typically two years, within a Restricted Territory, usually a 25-mile radius from the franchisee's Hck Hot Chicken business. If a court finds these restrictions too broad, they may be reduced to a one-year period and a 12.5-mile radius. These measures ensure that former managers or officers do not use confidential information gained during their tenure to start competing businesses or otherwise harm the Hck Hot Chicken franchise system.