In what capacities is someone holding a position with an Angry Chickz franchisee prohibited from being involved with another restaurant?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
While in my position with the Franchisee, I will not own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any restaurant or business that (i) specializes in developing, owning, operating or franchising restaurants 25% or more of whose gross sales is derived from the sale of boneless breaded chicken; (ii) any business engaged in the preparation, production or sale, at wholesale, of any boneless breaded chicken food products; or (iii) any restaurant or business that looks like, copies, imitates, operates with similar trade dress or décor, or is otherwise substantially the same as or similar to Angry Chickz Restaurants.
This restriction does not apply to my ownership of less than a five percent (5%) beneficial interest in the outstanding securities of any publicly-held corporation.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz FDD, while holding a position with an Angry Chickz franchisee, an individual is restricted from engaging with other restaurants or businesses in specific capacities. Specifically, they cannot own, engage in, or provide services to another restaurant or business in several roles. These roles include being an investor, partner, lender, director, officer, manager, employee, consultant, representative, or agent.
This restriction applies to any restaurant or business that meets one of three criteria: (1) specializes in developing, owning, operating, or franchising restaurants where 25% or more of gross sales come from boneless breaded chicken; (2) is involved in the preparation, production, or wholesale sale of boneless breaded chicken food products; or (3) resembles, copies, imitates, or operates similarly to Angry Chickz restaurants in terms of trade dress or décor.
However, there is an exception to this restriction. The prohibition does not extend to owning less than a five percent (5%) beneficial interest in the outstanding securities of a publicly-held corporation. This means that an individual working for an Angry Chickz franchisee can still hold a small investment in a publicly-traded restaurant company without violating the non-compete agreement.