Does the Angry Chickz Area Development Agreement allow for subfranchising by the developer?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3.1 During the Term of this Agreement, neither Company nor its Affiliates shall operate or grant a license or franchise to any other person or Entity to operate a Dine-In Restaurant within the Development Area, provided, that Developer is in compliance with the terms of this Agreement.
- 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)
The 2025 Angry Chickz Franchise Disclosure Document does not explicitly state whether an Area Developer has the right to subfranchise. However, it does state that Angry Chickz has the right to grant a franchise to any other person or entity to operate a Dine-In Restaurant outside of the Development Area. This suggests that Angry Chickz retains control over franchising decisions.
Item 1.3.2(a) states that Angry Chickz has the right to franchise or license others to own and/or operate Restaurants, the physical location of which are located outside of the Development Area. This clause indicates that Angry Chickz maintains the authority to grant franchises independently of any Area Developer agreements.
To fully understand the scope of an Area Developer's rights regarding subfranchising, a prospective franchisee should seek clarification from Angry Chickz. Specifically, they should ask whether the Area Development Agreement allows them to subfranchise and what conditions or restrictions might apply.