What activities are considered 'Competitive Activities' that an Angry Chickz franchisee is prohibited from engaging in during the term of the franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1 Non-Competition. Franchisee acknowledges that the System is distinctive and has been developed by Company and/or its Affiliates at great effort, time, and expense, and that Franchisee has regular and continuing access to valuable and confidential information, training, and Confidential Information regarding the System. Franchisee recognizes its obligations to keep confidential such information as set forth in this Agreement. Franchisee therefore agrees as follows:
- 12.1.1 During the Term, no Restricted Person shall in any capacity, either directly or indirectly, through one or more affiliated Entities, (i) engage in any Competitive Activities, (ii) divert or attempt to divert any business or customers of the Franchised Business to any other person or Entity, or (iii) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks.
- 12.1.2 To the extent permitted by Applicable Law, upon (i) the expiration or termination (including nonrenewal) of this Agreement, (ii) the occurrence of any Assignment, or (iii) the cession of any Restricted Person's relationship with Franchisee, each person who was a Restricted Person before such event shall not for a period of 24 months thereafter, either directly or indirectly, through one or more affiliated Entities engage in Competitive Activities within the Protected Area or within a radius of 10 miles from any then-existing Restaurant. In the event of the violation of this provision by Developer following termination or expiration of this Agreement, the period of time Developer shall be required to abide by this obligation shall be extended to a period ending 24 months after Developer is no longer in default of this obligation.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, during the term of the agreement, a Restricted Person is prohibited from engaging in any Competitive Activities either directly or indirectly through affiliated entities. They are also not allowed to divert or attempt to divert any business or customers of the Franchised Business to any other person or Entity. Additionally, they cannot perform any act that is injurious or prejudicial to the goodwill associated with the Angry Chickz marks.
Following the expiration or termination of the agreement, including nonrenewal, or after an assignment or the end of a Restricted Person's relationship with the franchisee, these individuals are restricted from engaging in Competitive Activities within the Protected Area or within a 10-mile radius of any existing Angry Chickz Restaurant for a period of 24 months. If a Developer violates this provision after termination or expiration, the restriction period extends to 24 months after the default is resolved.
These restrictions are in place because Angry Chickz considers its System distinctive, developed through significant effort, time, and expense. Franchisees have access to valuable and confidential information, training, and trade secrets. The agreement emphasizes the franchisee's obligation to maintain the confidentiality of this information. These measures aim to protect Angry Chickz's market position and proprietary information, ensuring that former franchisees or related parties do not unfairly compete using the knowledge gained during their association with the brand.