Is Angry Chickz allowed to operate restaurants at non-traditional venues?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's rights under this Agreement are nonexclusive and Company expressly reserves all other rights, including the exclusive, unrestricted right, in its discretion, directly and indirectly, itself and through its employees, Affiliates, representatives, franchisees, licensees, assigns, agents and others:
- 2.4.1 to develop, own or operate, and to franchise or license others to own or operate (i) Restaurants, the physical location of which are located outside of the Protected Area, regardless of proximity to the Protected Area; (ii) businesses that provide goods and services within or outside of the Protected Area, regardless of proximity to the Protected Area, other than a Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues; (iii) Restaurants and other businesses, the physical location of which are located at Non-Traditional Venues; and/or (iv) businesses operating under names other than under the Marks at any location, and of any type whatsoever, regardless of their proximity to the Protected Area and whether or not such businesses use any portion of the System, offer similar products and services, or compete with Restaurants;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz retains the right to operate restaurants at non-traditional venues. Specifically, Angry Chickz reserves the right to develop, own, and operate restaurants at non-traditional venues, as well as franchise or license others to do the same. This means that Angry Chickz can establish locations in places like airports, universities, or food courts, which are considered non-traditional venues.
This reservation of rights also extends to businesses that provide goods and services both within and outside a franchisee's protected area, with the exception of restaurants located within the protected area but not at non-traditional venues. This exception ensures that Angry Chickz can explore alternative business models and locations without infringing on the franchisee's protected area, especially in non-traditional settings.
For a prospective franchisee, this clause indicates that while they may have a protected area for a traditional dine-in restaurant, Angry Chickz can still operate or franchise locations at non-traditional venues within or outside that area. This could potentially lead to competition from the franchisor itself or other franchisees in non-traditional locations. Therefore, it is important for potential franchisees to understand the scope and potential impact of these non-traditional venues on their investment.