What is the dependency for the Angry Chickz franchisee to maintain their protected area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3 Protected Area.
Subject to Section 2.4 and provided that Franchisee is in full compliance with this Agreement and all other Agreements between Company (and its Affiliates) and Franchisee (or any of its Affiliates), then during the Term, neither Company nor its Affiliates will operate, or authorize any other individual or Entity to operate, a Dine-In Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues and as otherwise permitted in Section 2.4.
Franchisee acknowledges and agrees that the territorial rights provided in this Section 2.3, do not provide Franchisee with exclusive rights with respect to any particular customer or potential customer, nor do they restrict Company or any of its employees, Affiliates, representatives, franchisees, licensees, assigns, agents and others from accepting orders (including catering orders) from persons within or outside the Protected Area through online food ordering platforms and other systems and delivering or fulfilling such orders to customers or others located within the Protected Area.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a franchisee's ability to maintain their protected area is contingent upon their adherence to the franchise agreement. Specifically, Section 2.3 states that as long as the franchisee is in full compliance with the agreement and all other agreements with Angry Chickz and its affiliates, neither Angry Chickz nor its affiliates will operate or authorize others to operate a dine-in restaurant within the franchisee's protected area during the term of the agreement. This protection excludes restaurants located at non-traditional venues, as detailed in Section 2.4.
This clause means that an Angry Chickz franchisee's protected area is not guaranteed and can be voided if the franchisee fails to meet the obligations outlined in the franchise agreement. These obligations likely include maintaining standards, making required payments, and adhering to operational guidelines. The franchisee must consistently uphold their end of the agreement to ensure Angry Chickz does not encroach upon their territory by opening competing locations or authorizing others to do so.
It is important to note that the territorial rights do not prevent Angry Chickz from accepting orders from within or outside the protected area through online platforms and fulfilling those orders within the protected area. Additionally, Angry Chickz retains significant rights, including the ability to operate restaurants outside the protected area, businesses at non-traditional venues, and businesses under different names, regardless of competition with the franchisee's restaurant. Therefore, while a protected area is granted, it is subject to compliance and does not provide complete exclusivity against all forms of competition from Angry Chickz.