Does the Angry Chickz Area Development Agreement discuss the relationship between the Company and the Developer's Affiliates?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ranted solely pursuant to Franchise Agreements executed pursuant hereto. Without limiting the generality of the foregoing, nothing in this Agreement shall permit Developer to own or operate a Restaurant, except pursuant to duly executed and subsisting Franchise Agreement. Developer shall not use the Marks or any other trademarks, trade names, service marks, logotypes, insignias, trade dress or designs in any manner or for any purpose, including in connection with any offering of securities or any request for credit, without the prior express written approval of Company.
1.3 Territorial Rights
- 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)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Area Development Agreement does address the relationship between Angry Chickz and the Developer's Affiliates, specifically regarding territorial rights.
The agreement states that during the term of the Area Development Agreement, neither Angry Chickz nor its Affiliates will operate or grant a license or franchise to any other person or entity to operate a Dine-In Restaurant within the Development Area, as long as the Developer is in compliance with the terms of the agreement.
However, Angry Chickz expressly reserves all other rights, directly and indirectly, through its employees, Affiliates, representatives, licensees, franchisees, assigns, agents, and others. This includes the right to develop, own, and/or operate and to franchise or license others to own and/or operate Restaurants outside the Development Area, businesses that provide goods and services within and outside the Development Area under names other than "Angry Chickz," Restaurants and other businesses at Non-Traditional Venues within or outside the Development Area, and businesses operating under names other than under the Marks at any location.
This clause also allows Angry Chickz to offer, sell, provide, produce, license, distribute, and market products and services identified by the Marks to any person or Entity, at or through any location or outlet (other than Restaurants within the Development Area, except for those at Non-Traditional Venues), and through any distribution channel, including catering, the internet, mobile applications, third-party delivery services, food trucks, mail order catalogs, and direct sales through affiliates.