How does the Angry Chickz franchise agreement define the term 'Protected Area'?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
described on Exhibit A under the heading "Protected Area."
- 2.3 Protected Area.
Subject to Section 2.4 and provided that Franchisee is in full compliance with this Agreement and all other Agreements between Company (and its Affiliates) and Franchisee (or any of its Affiliates), then during the Term, neither Company nor its Affiliates will operate, or authorize any other individual or Entity to operate, a Dine-In Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues and as otherwise permitted in Section 2.4.
Franchisee acknowledges and agrees that the territorial rights provided in this Section 2.3, do not provide Franchisee with exclusive rights with respect to any particular customer or potential customer, nor do they restrict Company or any of its employees, Affiliates, representatives, franchisees, licensees, assigns, agents and others from accepting orders (including catering orders) from persons within or outside the Protected Area through online food ordering platforms and other systems and delivering or fulfilling such orders to customers or others located within the Protected Area.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the specific details of the 'Protected Area' granted to a franchisee are outlined in Exhibit A of the franchise agreement.
The FDD indicates that Angry Chickz, subject to certain conditions, will not operate or authorize others to operate a Dine-In Restaurant within the franchisee's Protected Area during the term of the agreement. This protection is not absolute, as it excludes Restaurants located at Non-Traditional Venues and is subject to other permissions detailed in Section 2.4 of the agreement.
However, the franchise agreement specifies that these territorial rights do not grant exclusive rights to any particular customer. Angry Chickz retains the right to accept orders from individuals both inside and outside the Protected Area through online platforms and third-party delivery services, even if those orders are fulfilled within the franchisee's territory. Angry Chickz also reserves the right to develop, operate, and franchise restaurants outside of the Protected Area, regardless of their proximity.
The Angry Chickz franchise agreement emphasizes that the franchisee's rights are nonexclusive, and the company retains broad rights to operate and license others outside the Protected Area, market through various channels, and utilize trademarks. The definition of the Protected Area is further detailed in Exhibit B, but the specifics of this exhibit are not included in the provided documentation.