How does Hck Hot Chicken disclose Confidential Information and Trade Secrets to franchisees?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
edures to prevent unauthorized disclosure of our Confidential Information and Trade Secrets.
We will disclose parts of the Confidential Information and Trade Secrets to you as we deem necessary or advisable for you to develop your HCK Hot Chicken Franchise during training and in guidance and assistance furnished to you under the Franchise Agreement, and you may learn or obtain from us additional Confidential Information and Trade Secrets during the term of the Franchise Agreement. The Confidential Information and Trade Secrets are valuable assets of ours and are disclosed to you on the condition that you, and your owners if you are a business entity, and employees agree to maintain the information in confidence by entering into a confidentiality agreement we can enforce. Nothing in the Franchise Agreement will be construed to prohibit you from using the Confidential Information or Trade Secrets in the operation of other HCK Hot Chicken Franchises during the term of the Franchise Agreement.
You must notify us within three days after you learn about another's use of language, a visual image, or a recording of any kind, that you perceive to be identical or substantially similar to one of our Copyrighted Works or use of our Confidential Information or Trade Secrets, or if someone challenges your use of our Copyrighted Works, Confidential Information or Trade Secrets. We will take whatever action we deem appropriate, in our sole and absolute discretion, to protect our rights in and to the Copyrighted Works, Confidential Information or Trade Secrets, which may include payment of reasonable costs associated with the action. However, the Franchise Agreement does not require us to take affirmative action in response to any apparent infringement of, or challenge to, your use of any Copyrighted Works, Confidential Information or Trade Secrets or claim by any person of any rights in any Copyrighted Works, Confidential Information or Trade Secrets, and we are not required to participate in the defense of, or provide indemnification to you in connection with, any proceeding related to the Copyrighted Works, Confidential Information or Trade Secrets. You must not directly or indirectly contest our rights to our Copyrighted Works, Confidential Information or Trade Secrets. You may not communicate with anyone except us, our counsel or our designees regarding any infringement, challenge, or claim. We will take action as we deem appropriate regarding any infringement, challenge or claim, and the sole right to control, exclusively, any litigation or other proceeding arising out of any infringement, challenge or claim under any Copyrighted Works, Confidential Information or Trade Secrets. You must sign any and all instruments and documents, give the assistance and do acts and things that may, in the opinion of our counsel, be necessary to protect and maintain our interests in any litigation or proceeding, or to protect and maintain our interests in the Copyrighted Works, Confidential Information or
Trade Secrets. If we require you to modify or discontinue use of the Copyrighted Works, Confidential Information or Trade Secrets, you must comply with all of our requirements.
No patents or patents pending are material to us at this time
ITEM 15. OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
If you are an individual, you must directly supervise the HCK Hot Chicken Franchise on its Premises. If you are not an individual, you must designate an "Operating Principal" acceptable to us who will be principally responsible for communicating with us about business, operational and other ongoing matters concerning your Restaurant. The Operating Principal must have the authority and responsibility for the day-to-day operations of your Restaurant and must have at least ten percent (10%) equity (directly or indirectly).
If you are opening more than one Restaurant, you will be required to have a "Director of Operations." The Director of Operations is responsible for running the operations of all of your Restaurants. The Director of Operations and Operating Principal may be the same person, depending on the role of the Operating Principal and depending on the number of Restaurants.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 41–43)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the franchisor discloses Confidential Information and Trade Secrets to franchisees as deemed necessary for developing their Hck Hot Chicken franchise. This disclosure occurs during training and through ongoing guidance and assistance provided under the Franchise Agreement. Franchisees may also gain access to additional Confidential Information and Trade Secrets throughout the term of the agreement. A key condition of this disclosure is that franchisees, their owners (if the franchisee is a business entity), and employees must agree to maintain the confidentiality of the information by entering into an enforceable confidentiality agreement.
The FDD specifies that the Brand Standards Manual, electronic communications, sales and promotional materials, the System, standards, specifications, policies, procedures, information, concepts and systems, knowledge, experience, training materials, techniques, and financial data are considered proprietary and confidential. Some of this information is also identified as trade secrets. Franchisees are obligated to maintain the confidentiality of this information and implement reasonable procedures to prevent unauthorized disclosure.
Franchisees must notify Hck Hot Chicken within three days of learning about any potential infringement or challenge to the use of Copyrighted Works, Confidential Information, or Trade Secrets. Hck Hot Chicken will then take action as it deems appropriate to protect its rights, but is not required to take any affirmative action or provide indemnification to the franchisee in connection with any related proceeding. Franchisees are prohibited from contesting Hck Hot Chicken's rights to its Copyrighted Works, Confidential Information, or Trade Secrets and must comply with any requirements to modify or discontinue their use.