Does the Angry Chickz franchise agreement grant exclusive rights to the franchisee?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
gement Agreement** . Franchisee shall not sublicense, sublease, subcontract or enter any management agreement providing for the right to operate the Franchised Business or to use the System.
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.
2.4 Reservation of Rights. Franchisee's rights under this Agreement are nonexclusive and Company expressly reserves all other rights, including the exclusive, unrestricted right, in its discretion, directly and indirectly, itself and through its employees, Affiliates, representatives, franchisees, licensees, assigns, agents and others:
- 2.4.1 to develop, own or operate, and to franchise or license others to own or operate (i) Restaurants, the physical location of which are located outside of the Protected Area, regardless of proximity to the Protected Area; (ii) businesses that provide goods and services within or outside of the Protected Area, regardless of proximity to the Protected Area, other than a Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues; (iii) Restaurants and other businesses, the physical location of which are located at Non-Traditional Venues;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the franchise agreement grants a protected area but does not provide exclusive rights to the franchisee.
Specifically, Angry Chickz or its affiliates will not operate or authorize others to operate a Dine-In Restaurant within the franchisee's Protected Area during the term of the agreement, provided the franchisee remains in full compliance with all agreements. However, this protection is subject to exceptions, including Restaurants located at Non-Traditional Venues, as detailed in Section 2.4 of the franchise agreement.
Furthermore, the territorial rights do not grant exclusive rights to any particular customer and do not restrict Angry Chickz from accepting orders through online platforms from customers within or outside the Protected Area. Angry Chickz retains the right to develop, own, operate, and franchise other businesses outside the Protected Area, at Non-Traditional Venues, or under different names, even if they compete with the franchisee's Restaurant. This reservation of rights underscores that the franchisee's rights are nonexclusive, and Angry Chickz maintains broad discretion in its operations and expansion strategies.
Prospective Angry Chickz franchisees should be aware that while they receive a Protected Area, this does not guarantee exclusivity. Competition from other Angry Chickz locations in non-traditional venues or from online orders fulfilled within the Protected Area is possible. It is essential to carefully evaluate the definition and scope of the Protected Area and understand the potential for competition from other channels and locations when considering an Angry Chickz franchise.