Is Angry Chickz allowed to franchise or license others to own and operate restaurants outside of a franchisee's development area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
We expressly reserve (our "Reserved Rights") the exclusive, unrestricted right, in our sole and absolute discretion, directly and indirectly:
- 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 (defined below) within or outside the Development Area, and regardless of their proximity to any Restaurant developed or under development or consideration by you; and (iv) businesses operating under names other than under our trademarks 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 12 — TERRITORY (FDD pages 33–36)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz retains significant rights outside a franchisee's development area. Specifically, Angry Chickz reserves the right to develop, own, operate, franchise, or license others to operate restaurants outside of a franchisee's Development Area, regardless of proximity. This means that even if a franchisee invests in developing a market, Angry Chickz can still establish other locations nearby that could potentially draw customers away.
This reservation of rights extends to various business types and venues. Angry Chickz can operate businesses under different names, develop restaurants at Non-Traditional Venues (such as airports, casinos, or food courts) both within and outside the Development Area, and operate other businesses under different trademarks at any location. This broad reservation allows Angry Chickz to pursue diverse business opportunities without being restricted by the territories granted to franchisees.
For a prospective franchisee, this highlights the importance of understanding the scope of the Development Area and the potential for competition from Angry Chickz itself or other franchisees. The franchisee's rights are limited to the Development Area specified in their Area Development Agreement and the Protected Area around their specific restaurant location. The franchisee does not receive an exclusive territory, and Angry Chickz's ability to operate or franchise outside of these areas could impact the franchisee's business. It is crucial to carefully evaluate the market and potential competition before investing in an Angry Chickz franchise.