What is the duration of the non-compete obligation for a Restricted Person after the termination of the Angry Chickz agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise agreement contains a covenant not to compete which extends beyond the termination of the franchise. This provision may not be enforceable under California law.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the franchise agreement includes a covenant not to compete that extends beyond the termination of the franchise. However, the FDD also states that this provision may not be enforceable under California law.
This means that if a franchisee's agreement is terminated, they may be restricted from engaging in similar business activities for a certain period and within a specific geographic area. The exact terms of the non-compete agreement, including the duration and scope, would be detailed in the franchise agreement itself.
However, the enforceability of such a clause is questionable in California, where laws generally disfavor non-compete agreements. Prospective franchisees should carefully review the franchise agreement with legal counsel to understand the specific terms of the non-compete clause and its potential enforceability in their specific jurisdiction. It's important to note that addenda for other states like Michigan and Illinois also address the enforceability of certain provisions, highlighting the importance of understanding state-specific franchise laws.