Does the Angry Chickz agreement allow the company to operate businesses that compete with Restaurants outside of the Development Area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3.2 Company expressly reserves all other rights, including the exclusive, unrestricted right, in its discretion, directly and indirectly, itself and through its employees, Affiliates, representatives, licensees, franchisees, assigns, agents and others:
- (a) to develop, own and/or operate and to franchise or license others to own and/or operate (i) Restaurants, the physical location of which are located outside of the Development Area, regardless of proximity to the Development Area, (ii) businesses that provide goods and services within and outside of the Development Area, regardless of proximity to the Development Area under names other than "Angry Chickz," (iii) Restaurants and other businesses at Non-Traditional Venues within or outside the Development Area, and regardless of their proximity to any Restaurant developed or under development or consideration by Developer; and (iv) businesses operating under names other than under the Marks at any location, and of any type whatsoever, regardless of their proximity to the Development Area and whether or not such businesses use any portion of the System, offer similar products or services or compete with Restaurants.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz retains significant rights to operate and franchise businesses outside a franchisee's Development Area, even if they compete with the franchisee.
Angry Chickz explicitly reserves the right to develop, own, operate, and franchise restaurants outside the Development Area, regardless of their proximity. This includes the right to franchise or license others to operate restaurants. They can also operate businesses providing goods and services, regardless of proximity to the Development Area, under names other than "Angry Chickz." Additionally, Angry Chickz can operate restaurants and other businesses at Non-Traditional Venues, both within and outside the Development Area.
This means that while a franchisee is protected from other Angry Chickz dine-in restaurants within their Development Area, Angry Chickz can still operate competing businesses outside of it. These could be under different brand names or through alternative venues like food trucks or online platforms. This clause gives Angry Chickz considerable freedom to expand its brand and market reach, potentially impacting a franchisee's long-term growth opportunities.
For a prospective franchisee, this highlights the importance of carefully evaluating the market and competitive landscape outside their protected territory. While the Development Area offers some exclusivity, the broader market remains open to competition from Angry Chickz itself. Franchisees should consider this when projecting potential revenue and planning their business strategy.