What is the Hck Hot Chicken franchisee's responsibility regarding the confidentiality of Trade Secrets after the termination of the franchise agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
d operating the Franchised Restaurant during the Term of this Agreement. A Restricted Person's duplication or use of the Trade Secrets in any other endeavor or business shall constitute an unfair method of competition. Each Restricted Person shall: (i) not use the Trade Secrets in any business or other endeavor other than in connection with the Franchised Restaurant; (ii) maintain absolute confidentiality of the Trade Secrets during and after the Term of this Agreement; and (iii) make no unauthorized copy of any portion of the Trade Secrets, including the HCK Hot Chicken Brand Standards Manual, bulletins, supplements, confidential correspondence, or other confidential communications, whether written or oral. Franchisee shall operate the Restaurant and implement all reasonable procedures prescribed from time to time by Franchisor to prevent unauthorized use and disclosure of the Trade Secrets, including, implementing restrictions and limitations as Franchisor may prescribe on disclosure to employees and use of non-disclosure and noncompetition provisions in employment agreements with employees who may have access to the Trade Secrets. Promptly upon Franchisor's request, Franchisee shall deliver executed copies of such agreements to Franchisor.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, franchisees and their restricted persons (employees, etc.) must maintain absolute confidentiality of the Trade Secrets during and after the term of the Franchise Agreement. Trade Secrets include the HCK Hot Chicken Brand Standards Manual, bulletins, supplements, confidential correspondence, or other confidential communications, whether written or oral.
Upon termination of the franchise agreement, the franchisee must immediately cease using all Trade Secrets and return the HCK Hot Chicken Brand Standards Manual, all training materials, electronic files, records, customer lists, files, advertising and promotional materials, and all other written materials incorporating Trade Secrets, including all copies, to Hck Hot Chicken.
In addition, the franchisee must make cosmetic changes to the former Franchised Restaurant so that it no longer contains or resembles Hck Hot Chicken's proprietary designs. This includes removing all materials that would identify the location as a Hck Hot Chicken restaurant and removing distinctive cosmetic features, finishes, soffits, interior wall coverings and colors, exterior finishes and colors, and signage from the premises, as Hck Hot Chicken directs.