What is the duration of the non-compete period for a Restricted Person after the expiration or termination of the Angry Chickz franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1.2 To the extent permitted by Applicable Law, upon (i) the expiration or termination (including nonrenewal) of this Agreement, (ii) the occurrence of any Assignment, or (iii) the cession of any Restricted Person's relationship with Franchisee, each person who was a Restricted Person before such event shall not for a period of 24 months thereafter, either directly or indirectly, through one or more affiliated Entities engage in Competitive Activities within the Protected Area or within a radius of 10 miles from any then-existing Restaurant. In the event of the violation of this provision by Developer following termination or expiration of this Agreement, the period of time Developer shall be required to abide by this obligation shall be extended to a period ending 24 months after Developer is no longer in default of this obligation.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a Restricted Person is subject to a non-compete agreement for 24 months after the expiration or termination of the franchise agreement. This restriction applies to anyone who was considered a Restricted Person before the agreement ended.
During this 24-month period, the Restricted Person is prohibited from engaging in Competitive Activities, either directly or indirectly, through affiliated entities. This restriction is limited to the Protected Area or within a 10-mile radius of any existing Angry Chickz Restaurant. The non-compete obligations extend to situations involving the expiration or termination of the agreement, any assignment, or the cessation of a Restricted Person's relationship with the franchisee.
Furthermore, if a Developer violates the non-compete provision after the termination or expiration of the agreement, the period for which they must abide by the obligation will be extended. The extension lasts until 24 months after the Developer is no longer in default of their obligation. This clause ensures that Angry Chickz can enforce the non-compete agreement effectively and protect its business interests and brand reputation.