Can Angry Chickz develop, own, or operate restaurants outside of the protected area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's rights under this Agreement are nonexclusive and Company expressly reserves all other rights, including the exclusive, unrestricted right, in its discretion, directly and indirectly, itself and through its employees, Affiliates, representatives, franchisees, licensees, assigns, agents and others:
2.4.1 to develop, own or operate, and to franchise or license others to own or operate (i) Restaurants, the physical location of which are located outside of the Protected Area, regardless of proximity to the Protected Area; (ii) businesses that provide goods and services within or outside of the Protected Area, regardless of proximity to the Protected Area, other than a Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues; (iii) Restaurants and other businesses, the physical location of which are located at Non-Traditional Venues; and/or (iv) businesses operating under names other than under the Marks at any location, and of any type whatsoever, regardless of their proximity to the Protected Area and whether or not such businesses use any portion of the System, offer similar products and services, or compete with Restaurants;
2.4.2 to offer, sell, provide, produce, license, distribute and market products and services identified by the Marks and/or other trademarks or service marks to any Person, at or through any location or outlet (other than a Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues), regardless of proximity to the Protected Area, and through any distribution channel, at wholesale or retail, including by means of catering, the internet or internet web site, mobile application, online food and beverage ordering, third-party food and beverage delivery services, food trucks or other non-fixed locations, mail order catalogs, direct mail advertising, and other distribution methods, including websites, online retailers, and direct sales through affiliates;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz retains the right to develop, own, and operate restaurants outside of a franchisee's protected area. Specifically, Angry Chickz reserves the right to develop, own, or operate restaurants, including franchising or licensing others to do the same, at locations outside the franchisee's protected area, regardless of how close they are to that protected area. This condition applies to traditional restaurants and businesses at non-traditional venues.
This reservation of rights extends to businesses operating under different names and offering similar products or services, irrespective of their proximity to the protected area or whether they use the Angry Chickz system. Angry Chickz can also offer and sell products and services identified by their trademarks through any location or outlet outside the franchisee's protected area (excluding traditional restaurants within the protected area, but including those at non-traditional venues). This includes various distribution channels such as catering, the internet, mobile applications, and third-party delivery services.
For a prospective Angry Chickz franchisee, this means that while you may be granted a protected area, Angry Chickz maintains considerable freedom to operate or franchise other locations outside that area, even if they compete with your restaurant. The franchisee's rights are nonexclusive, and Angry Chickz's rights are unrestricted in these regards. This is a common practice in franchising, allowing the franchisor to expand the brand's presence and explore different market opportunities. However, it also introduces a potential risk of competition from other Angry Chickz outlets, albeit outside the defined protected area.