What does Angry Chickz consider to be Competitive Activities?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
"Competitive Activities" means to, own, operate, lend to, advise, be employed by, or have any financial interest in (i) any restaurant 25% or more of whose gross sales is derived from the sale of boneless breaded chicken, other than a Restaurant operated pursuant to a validly subsisting Franchise Agreement with Company, or (ii) any business that specializes in developing, owning, operating or franchising restaurants 25% or more of whose gross sales is derived from the sale of boneless breaded chicken, or (iii) any business engaged in the preparation, production or sale, at wholesale, of any boneless breaded chicken food products. Notwithstanding the foregoing, "Competitive Activities" shall not include the direct or indirect ownership solely as an investment, of securities of any Entity which are traded on any national securities exchange if applicable owner thereof (i) is not a controlling person of, or a member of a group which controls, such Entity and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such Entity.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, "Competitive Activities" are specifically defined in relation to boneless breaded chicken.
Angry Chickz considers it a competitive activity if a franchisee owns, operates, lends to, advises, is employed by, or has any financial interest in any restaurant deriving 25% or more of its gross sales from boneless breaded chicken, excluding other Angry Chickz franchises. This also applies to businesses specializing in developing, owning, operating, or franchising such restaurants. Additionally, any business engaged in the wholesale preparation, production, or sale of boneless breaded chicken food products is considered a competitive activity.
However, the ownership of securities in a publicly traded entity is not considered a competitive activity if the owner is not a controlling person or part of a controlling group and owns less than 5% of any class of the entity's securities. This exception allows franchisees to invest in publicly traded restaurant companies without violating the non-compete agreement, provided their investment remains passive and below the specified threshold.