Regarding Hck Hot Chicken, who is considered an immediate family member for the purposes of the agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that you could circumvent the purpose of this Agreement by disclosing Know-how to an immediate family member (i.e., spouse, parent, sibling, child, grandparent or grandchild).
You also acknowledge that it would be difficult for us to prove whether you disclosed the Know-how to family members.
Therefore, you agree that you will be presumed to have violated
the terms of this Agreement if any member of your immediate family: (i) engagesin any Prohibited Activities during any period of time during which you are prohibited from engaging in the Prohibited Activities; or (ii) uses or discloses the Know-how. However, you may rebut this presumption by furnishing evidence conclusively showing that you did not disclose the Know-how to the family member.
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, an immediate family member is defined within the context of agreements related to intellectual property and know-how. Specifically, the document identifies an immediate family member as a spouse, parent, sibling, child, or grandchild. This definition is important because the franchisee acknowledges that they could potentially circumvent the agreement by disclosing confidential information to these family members.
The agreement presumes that a franchisee has violated the terms if any immediate family member uses or discloses Hck Hot Chicken's intellectual property or engages in prohibited activities. However, the franchisee has the opportunity to rebut this presumption by providing conclusive evidence that they did not disclose the know-how or intellectual property to the family member. This places a significant responsibility on the franchisee to ensure their family members are aware of and respect the confidentiality obligations.
This clause is designed to protect Hck Hot Chicken's proprietary information and system. It highlights the importance of maintaining confidentiality not only by the franchisee but also within their immediate family circle. Prospective franchisees should carefully consider the implications of this clause and ensure they can effectively manage the risk of potential breaches by family members. This type of clause is relatively common in franchise agreements to safeguard the franchisor's intellectual property.