What events trigger the post-term non-compete obligations for a Restricted Person associated with an Angry Chickz franchise?
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, post-term non-compete obligations for a Restricted Person are triggered by specific events. These events include the expiration or termination (including nonrenewal) of the Franchise Agreement, any assignment of the agreement, or the cessation of any Restricted Person's relationship with the franchisee.
Following any of these triggering events, a Restricted Person is subject to a 24-month non-compete period. During this period, the Restricted Person is prohibited from engaging in Competitive Activities either within the Protected Area defined in the agreement or within a 10-mile radius of any then-existing Angry Chickz Restaurant.
It's important to note that if a developer violates the non-compete provision after the termination or expiration of the agreement, the duration of the non-compete obligation will be extended. The extension lasts until 24 months after the developer is no longer in default of the obligation. This clause ensures continued compliance and protection of Angry Chickz's interests even after a breach of the agreement.