What is the definition of 'Restricted Person' in the Angry Chickz FDD?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
"Restricted Persons" means Franchisee, and each of its Owners and Affiliates, and the respective officers, directors, managers, and Affiliates of each of them, and the Operating Principal and the spouse and family members who live in the same household of each of the foregoing who are individuals, except, that if Company or any Affiliate of Company has any ownership interest in Franchisee, (i) the term "Restricted Person" shall not include or refer to the Company or that Affiliate or their respective direct and indirect parents and subsidiaries, (ii) the term "Restricted Person" shall not include or refer to any manager, officer or director of Franchisee that is designated to be manager, officer or director of Franchisee by the Company or its Affiliates; and (iii) no obligation or restriction upon the "Franchisee", or its Owners shall bind Company, said Affiliate or their respective direct and indirect parents and subsidiaries or their respective officers, directors, or managers.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a "Restricted Person" is defined as the franchisee, their owners and affiliates, and the respective officers, directors, managers, and affiliates of each of them. It also includes the Operating Principal and the spouse and family members who live in the same household of each of the foregoing who are individuals.
However, there are exceptions to this definition. If Angry Chickz or any of its affiliates has any ownership interest in the franchisee, the term "Restricted Person" does not include Angry Chickz, its affiliate, or their respective direct and indirect parents and subsidiaries. Additionally, it does not include any manager, officer, or director of the franchisee that is designated to be a manager, officer, or director of the franchisee by Angry Chickz or its affiliates. Furthermore, no obligation or restriction upon the "Franchisee", or its Owners shall bind Angry Chickz, said Affiliate or their respective direct and indirect parents and subsidiaries or their respective officers, directors, or managers.
This definition is important because it outlines who is subject to certain restrictions and obligations under the franchise agreement. It clarifies the scope of these restrictions, particularly in cases where Angry Chickz has an ownership interest in the franchisee. Prospective franchisees should carefully review this definition to understand how it applies to their specific situation and to ensure they are aware of all applicable restrictions.