Can Angry Chickz develop Restaurants outside of the Development Area, regardless of proximity?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
We expressly reserve (our "Reserved Rights") the exclusive, unrestricted right, in our sole and absolute discretion, directly and indirectly:
- a) to develop, own and/or operate and to franchise or license others to own and/or operate (i) Restaurants, the physical location of which are located outside of the Development Area, regardless of proximity to the Development Area, (ii) businesses that provide goods and services within and outside of the Development Area, regardless of proximity to the Development Area under names other than "Angry Chickz," (iii) Restaurants and other businesses at Non-Traditional Venues (defined below) within or outside the Development Area, and regardless of their proximity to any Restaurant developed or under development or consideration by you; and (iv) businesses operating under names other than under our trademarks at any location, and of any type whatsoever, regardless of their proximity to the Development Area and whether or not such businesses use any portion of the System, offer similar products or services or compete with Restaurants;
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz retains specific rights regarding where it can develop or franchise restaurants. Angry Chickz explicitly reserves the right to develop, own, operate, franchise, or license others to operate restaurants outside of a franchisee's Development Area, irrespective of how close they are to that Development Area. This means that even if a franchisee has an Area Development Agreement, Angry Chickz is not restricted from establishing restaurants outside that area.
This reservation of rights extends to various business types and locations. Angry Chickz can operate businesses that offer goods and services both inside and outside the Development Area under names other than "Angry Chickz." They can also establish restaurants and other businesses at Non-Traditional Venues, whether these are within or outside the Development Area and regardless of their proximity to a franchisee's restaurant. Non-Traditional Venues include locations like airports, casinos, universities, and food courts. Furthermore, Angry Chickz can operate businesses under different trademarks at any location, regardless of proximity to the Development Area, even if these businesses compete with existing Angry Chickz restaurants.
For a prospective Angry Chickz franchisee, this means that while you may be granted a Development Area, Angry Chickz retains considerable freedom to develop competing businesses nearby. This could impact the franchisee's potential market share and revenue. It is important to note that the definition of "Non-Traditional Venue" is broad, potentially encompassing many locations. Franchisees should carefully consider the implications of these reserved rights and how they might affect their investment before signing an agreement. Understanding the potential for competition from Angry Chickz itself is crucial for assessing the risk and opportunity associated with this franchise.